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Tag Archives: index funds

Lazy. . . Useless . . . Good for Nothing . . . That’s Not a Bad Investing Strategy

making investing easier

Kim recently commented on an article of mine saying “I am too lazy to try to beat the market, so I really like your style of investing.”  I wish everyone who invests was as lazy as Kim and me.  Lazy investing necessarily means that one passively invests in indexes, does not try to time the market, does not chase returns, and does not invest emotionally.  Lazy means buy-and-hold. I certainly can’t claim these ideas as my own.  I’m merely parroting what the likes of the following great investment minds have said in one form or another: Bill Gross, Peter Lynch, Jack Bogle, Burton Malkiel, etc.  Earlier this year, even the most successful investor of our time Warren Buffett recommended a simple portfolio of low-cost passive index funds for his estate. Recent market movements, and actually the volatility going all the way back to the 2000’s, might lead some to disavow a buy-and-hold strategy.  Listen to them and you might be thinking that you can create alpha and generate better returns by pursuing anything other than a buy-and-hold strategy.  But the question you have to ask yourself is “Do you think you’re smart enough to time the market’s movements?” The answer ...

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Advice for a Beginning Investor

I had the pleasure of discussing investing with one of my friends recently. She and her husband hadn’t really started saving for retirement. They also had a baby last year and wanted to look into options for college funds. I am certainly no expert, but I’ve learned a thing or two over the years, and I love to talk about money. It’s just hard to find anyone to talk with most of the time! It turns out they had already met with a financial planner who gave some recommendations, but she was unsure about his advice. It turns out she had already done quite a bit of research and just needed to pull the trigger. I think lots of people are in the same boat and end up doing nothing because they are scared of making the wrong investment choices. There is never a better time than now to start investing, and you don’t necessarily need a financial planner to do so. Financial Planners, Friend or Foe? I have nothing against having a financial planner. I know there are some amazing ones. I just don’t think any of them live in my town. I met with one a few years ...

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