We frequently mention the importance of employing global diversification to manage investment risks while pursuing expected returns. The broad concept is simple: Don’t put all your eggs in one basket.

That said, beyond the simple adage, questions may remain. A recent Dimensional Fund Advisors paper addressed one of them: Since U.S. stocks have outperformed international and emerging markets stocks over the last several years, is it still worthwhile to invest worldwide?

If you’d rather skip to the compelling conclusion, the short answer is, yes, global diversification is still worth it. Not only do the last several years tell us nothing about the next several years, they could lull U.S. investors into a false sense of home-biased complacency. To emphasize this point, we need only point to the 2000–2009 “lost decade,” when the S&P 500 took a depressing 10-year dive, while most of the world’s indexes soared.

Bottom line: You never know where your next source of best returns will be found, so it’s best to go global – and stay that way.

While I just turned 76 last week, my 80th birthday doesn’t feel that far off. I couldn’t have asked for a better role model on how to prepare for that milestone than Chris Crowley, octogenarian and best-selling author of the Younger Next Year book series.*

Earlier this month, we were delighted to host a special evening with Crowley (84) and a gathering of friends and family at St. Louis’ PALM Integrated Health venue. In his featured book at the event, Crowley shared seven tips on how to “Live Strong, Fit and Sexy — Until You’re 80 and Beyond.” He and his co-author Dr. Henry Lodge suggest this is “all” you have to do:

1. Exercise six days a week for the rest of your life.
2. Do serious aerobic exercise four days a week for the rest of your life.
3. Do serious strength training, with weights, two days a week for the rest of your life.
4. Spend less than you make.
5. Quit eating crap!
6. Care.
7. Connect and commit.

Okay, I’m on it!

*To our clients – Shoot us an email if you’d like your own copy of Younger Next Year.

When I discovered Jonathan Clements 20 years ago, I noticed right away we had a lot in common. We were both early advocates for evidence-based investing (or “passive investing,” back then). We both knew better than to heed all the “noise” from the vast majority of the popular press. We knew even then, our jobs were to help investors focus on the essentials: reducing costs, managing market risks, understanding the science of investing.

There was one difference between us. While I was a fiduciary investment advisor for a then-small firm, Clements was the personal financial columnist for The Wall Street Journal, and one of the few voices of reason in the media. His columns left me optimistic, knowing we were not alone.

At the time, I did not notice a physical resemblance. Funny what a few years will do. These days, I see we now share a similar hair style as well!

Whatever. We’re both still going strong doing what we love: I, in my role at Hill Investment Group, and Clements, as proprietor of the Humble Dollar blog and author of the newly published, “From Here to Financial Happiness.”

One of his recent posts, “Tell Us a Story,” caught my attention. We often employ story-telling in our client conversations here at HIG. But, as Clements points out, it’s important to not let random anecdotes distract you from the greater story of evidence-based investing. “Detail the inevitable failure of most investors to beat the market,” he says, “and someone will bring up the neighbor who purportedly bought Amazon’s stock at the initial public offering and never sold.”

I agree. There’s always “the neighbor,” or cousin, or co-worker who hits the random jackpot. Good for them. But, as Clements concludes: “The weight of our many mediocre investment decisions eventually sinks in – and (you were expecting me to say this) the logic of indexing proves irresistible.”

If you’re looking for other thoughtful ideas about achieving financial happiness, you might find Clements’ materials irresistible as well. From one white-haired gent to another: Hat’s off to you, Jonathan!