Most of the personal-finance-advice industry is parasitic and/or self-deluded, and it’s generally agreed on by economic theory and experimental measurement that an index fund will deliver the best returns you can get without huge amounts of effort.
True. But just because something is marketed as an index fund doesn’t make it an actual index fund. You want to invest in an index fund that has (1) low fees, (2) indexes something large such as the S&P 500, and (3) can be invested in via a tax-preferred mechanism such as a pension plan.
True. But just because something is marketed as an index fund doesn’t make it an actual index fund. You want to invest in an index fund that has (1) low fees, (2) indexes something large such as the S&P 500, and (3) can be invested in via a tax-preferred mechanism such as a pension plan.
I’m an academic economist who writes a column for Better Investing Magazine.
Do you have (or could you point to) more specific advice on investing in index funds?
Also, is there somewhere that discusses the evidence and reasons for favoring index funds?
The recommendation I often hear from some of the smarter people I know is one of Vanguard’s index funds.
Perhaps see Malkiel’s A Random Walk Down Wall Street.
See the efficient market hypothesis.
Would you consider writing something on evidence-based investing for the main?