3 ms·

This is why I believe people who think you can just sock money into a "low cost index fund" and never think twice about it are misguided. Even if you end up wit

This is why I believe people who think you can just sock money into a "low cost index fund" and never think twice about it are misguided. Even if you end up with most of your money in said low-cost index fund, it's important to be engaged, informed and educated.

sukilot 12y ago
How so? The article shows how NOT using an index fund hurts.
- encoderer 12y ago
  Rather, I think the article is showing us how not being informed hurts. It took them 10 years to understand what was happening with their money? Unacceptable. Learning how investing works, breaking out of the pie-chart bs sent to you in your nice quarterly statements and really understanding how your money is invested.... Like i said, I don't have an opinion on where you put your money but I think the idea that you can hand it over and never think twice because you're in a low-cost fund is misguided.
lucretian 12y ago
low cost index funds are passively managed. there's nothing to be informed or educated or engaged about other than having an opinion about the general market. not sure what your point is here.
- encoderer 12y ago
  If your idea of good financial planning is just putting all your money into $SPY and $QQQ and keeping it there until you need to start withdrawing from it, I fear you're on a dangerous path. Acting as if the only decision is the right and pure choice of total index-fund investment and it all just works out after that is, I believe, wrong. Finance, how the markets work, things of this nature.. we do a poor job of educating people about it. The pension fund outsourced the job of understanding their investments, and I fear people do the same. Of course, this is controversial because... you know... knowledge is power, except finance, you can't know jack about finance... or something?

3 ms·

This is why I believe people who think you can just sock money into a "low cost index fund" and never think twice about it are misguided. Even if you end up wit

by encoderer 12y ago

sukilot 12y ago
How so? The article shows how NOT using an index fund hurts.
- encoderer 12y ago
  Rather, I think the article is showing us how not being informed hurts. It took them 10 years to understand what was happening with their money? Unacceptable. Learning how investing works, breaking out of the pie-chart bs sent to you in your nice quarterly statements and really understanding how your money is invested.... Like i said, I don't have an opinion on where you put your money but I think the idea that you can hand it over and never think twice because you're in a low-cost fund is misguided.
lucretian 12y ago
low cost index funds are passively managed. there's nothing to be informed or educated or engaged about other than having an opinion about the general market. not sure what your point is here.
- encoderer 12y ago
  If your idea of good financial planning is just putting all your money into $SPY and $QQQ and keeping it there until you need to start withdrawing from it, I fear you're on a dangerous path. Acting as if the only decision is the right and pure choice of total index-fund investment and it all just works out after that is, I believe, wrong. Finance, how the markets work, things of this nature.. we do a poor job of educating people about it. The pension fund outsourced the job of understanding their investments, and I fear people do the same. Of course, this is controversial because... you know... knowledge is power, except finance, you can't know jack about finance... or something?