A Moment of Clarity
Sometimes you come across something on the internet that you just have to share. Rick Ferri is a frequent contributor to the “Bogleheads Forum” which sings the praises of low-cost, asset allocation investing via index funds. What’s interesting about this article that he shared is that early on in his professional carrer as a financial analyst, he didn’t fully understand the benefits of index funds. Follow the link below to see how he came to realize there is an alternate approach...
read moreSure You Can Beat the Market!
All right, I’ll admit it — this is a classic case of bait and switch. I put the “sexy” title up to draw your attention. The reality is that in all likelihood you can NOT beat the market. Why is that? Two simple reasons. First, if you decide you want to chase the hottest stock or mutual fund, you’re going to have to deal with transaction expenses. On average, an equity mutual fund charges from 1.3 – 1.5% per year for all expenses. Versus a MUCH lower 0.2-0.3% for certain index funds...
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