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About a week ago, I blogged that "Total Return is Everything" in 10 Things I Believe About Saving and Investment and that folks need to be aware of the risks embedded in so-called conservative investments. We got the perfect illustration of that Friday in the Utilities Select Sector SPDR Fund (trading symbol: XLU). XLU has one of the higher 12-month dividend yields at 3.27% (source: Morningstar) yet it lost 3.75% on Friday alone. One day's loss in fund value swallowed an entire year of dividends.

1. The ability to live within one’s means and save significantly trumps saving less and trying (hoping) to earn high returns on it. Better to spend more time and effort on that which you can control than that which you can’t. And for most people, living within one’s means is a behavioral issue rather than an economic issue. 2. Return of capital is more important than return on capital. When various asset classes—stocks, bonds, real estate, so on—become obviously overpriced like they are today (September 2016), unless you’re a short-term trader it’s usually better to be patient for more reasonable prices. Why be out there trying to pick up nickels in front of a steam roller?

Hands down, Warren Buffet is one of the most successful investors of all time. And the media loves to interview him because he’s incredibly pithy and quotable. But sometimes the context of Buffet’s pronouncements gets lost in the noise and folks think they ought to copy his investing style.

Question and background: What should I do with an IRA that is currently in cash? I rolled over a 401(k) into an IRA at the end of 2015. Money was put into cash at time of rollover. With the significant losses in the stock and bond markets [earlier] in 2016, I have been reluctant to get the money invested and have just let the money sit in cash. I haven't lost any money, but I need to get this money working for me and provide income. I am recently retired and need income from my investments.

Question: What do you call a stock down 90%? Answer: A stock that was down 80% and then got cut in half. -- David Einhorn, Greenlight Capital, Inc.