Monday, May 23, 2011

Increase Your Probability of Investment Success

Investing in stocks or bonds?

Why are you not investing with index funds?

Did you know that a recent study showed that the Total US Stock Market Index Fund beat over 72% of all US stock funds over a 20 year period?

Did you know that similar studies show a more profound superiority with specific sectors and bond funds?

Did you know that the laws governing trusts (Restatement 3rd of Trusts, Prudent Investor Rule 1992) consider index funds the highest level of of fiduciary care?

Did you know that the Federal Government Thrift Savings Plan offers only index fund options?

Have you read The May 13th NY Times "Your Money" column: Why 401(K)'s Should Offer Index Funds?
http://www.nytimes.com/2011/05/14/your-money/401ks-and-similar-plans/14money.html

Did you know that Charles Schwab will be introducing an all index 401K plan later this year?

Why not improve your probability of investment success by:
1.  Developing a portfolio that meets your risk tolerances
2.  Fund it with index funds -  they outperform more expensive actively managed funds over time.
3.  Re-balance annually