How would you like to manage your self-directed retirement account with just two funds and one signal per quarter?

My plan runs on the two cheapest index funds in your account, one stock fund and one bond fund. Each quarter, it compares the result of your stock fund with a performance goal line. If your fund falls short for the quarter, my plan moves money from your bond fund into your stock fund. If your fund exceeds its goal for the quarter, my plan sells the surplus and moves it into your bond fund for safekeeping.

That’s my plan in a nutshell. There are some additional rules, and two fancier leveraged versions of it, but the basic plan works as just described. It’s called The 3% Signal, and it works in any IRA, 401(k), 403(b), or other self-directed account.

I run three versions of the plan in The Kelly Letter. They are the original 3% Signal, a 2x leveraged 6% Signal, and a 3x leveraged 9% Signal. I explain all of them to subscribers to the letter, and then provide weekly reviews of stock market activity every Sunday between quarterly signals.

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