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Invest directly in stock and bonds. And if that is not available, than invest in low fee funds.

by im2w1l 12y ago

kasey_junk 12y ago
"Invest directly in stock and bonds." That is pretty much the opposite advice you should take from those findings. In general, investors now have the widest array of low cost, diversified instruments available at any point in history. Most advisors who know what they are talking about, will tell you to take one of these options (a non-managed index fund, a highly diversified etf) and invest in that. Rebalance once a year and don't worry about beating the market.
- porker 12y ago
  > Most advisors who know what they are talking about, will tell you to take one of these options (a non-managed index fund, a highly diversified etf) and invest in that. Thanks, do you have any references for this, or more details on such options?
  - kasey_junk 12y ago
    http://www.bogleheads.org/ http://www.bogleheads.org/ Also "A Random Walk Down Wall Street" is a central book in this genre. I will say, you can't generally control how your pension is run (and they run the gamut from wonderful to nearly criminal). It's one of the reasons I highly discount pension funds as a benefit.
    - porker 12y ago
      In the UK the latest hot thing is Self-Invested Pension Plans (SIPPs) and being self-employed all of mine is in that. Hopefully better performance in the long run, but a lot more faff/stress making good decisions :)
    - n72 12y ago
      A Random Walk is great, as is Bill Bernstein's the 4 Pillars of Investment.
- im2w1l 12y ago
  Well I do not advocate stock picking to beat the market. Just to construct the index tracker yourself instead of paying a fee for someone else to do it.
  - kasey_junk 12y ago
    That is still phenomenally bad advice. You aren't paying index funds or etfs for their stock picking, heck most of that is in publicly available documents. What you are paying them for is their operational capabilities and economies of scale. I would be amazed if a retail consumer could put together a balanced, diversified portfolio with the same cost as an actively managed fund. To try and compete with an etf or non-managed index fund is crazy.
  - n72 12y ago
    The expense ratio of VTSAX is .05%. It's ludicrous at that price to do it yourself.

Invest directly in stock and bonds. And if that is not available, than invest in low fee funds.

by im2w1l 12y ago

Invest directly in stock and bonds. And if that is not available, than invest in low fee funds.

"Invest directly in stock and bonds." That is pretty much the opposite advice you should take from those findings. In general, investors now have the widest array of low cost, diversified instruments available at any point in history. Most advisors who know what they are talking about, will tell you to take one of these options (a non-managed index fund, a highly diversified etf) and invest in that. Rebalance once a year and don't worry about beating the market.

porker 12y ago
> Most advisors who know what they are talking about, will tell you to take one of these options (a non-managed index fund, a highly diversified etf) and invest in that. Thanks, do you have any references for this, or more details on such options?
- kasey_junk 12y ago
  http://www.bogleheads.org/ http://www.bogleheads.org/ Also "A Random Walk Down Wall Street" is a central book in this genre. I will say, you can't generally control how your pension is run (and they run the gamut from wonderful to nearly criminal). It's one of the reasons I highly discount pension funds as a benefit.
  - porker 12y ago
    In the UK the latest hot thing is Self-Invested Pension Plans (SIPPs) and being self-employed all of mine is in that. Hopefully better performance in the long run, but a lot more faff/stress making good decisions :)
  - n72 12y ago
    A Random Walk is great, as is Bill Bernstein's the 4 Pillars of Investment.
im2w1l 12y ago
Well I do not advocate stock picking to beat the market. Just to construct the index tracker yourself instead of paying a fee for someone else to do it.
- kasey_junk 12y ago
  That is still phenomenally bad advice. You aren't paying index funds or etfs for their stock picking, heck most of that is in publicly available documents. What you are paying them for is their operational capabilities and economies of scale. I would be amazed if a retail consumer could put together a balanced, diversified portfolio with the same cost as an actively managed fund. To try and compete with an etf or non-managed index fund is crazy.
- n72 12y ago
  The expense ratio of VTSAX is .05%. It's ludicrous at that price to do it yourself.