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Note: This post was create in an attempt to internalize what I've recently learned about investing.
If you're reading this post, chances are high that you're capable of managing your own investments and increasing your long-term results. You may even enjoy the process. For help getting started, consider the monthly step-by-step suggestions provided below. "Managing your own investments" is a loose description that will probably mean different things to different people. The suggestions listed in Months 1-8 do not involve any buying, selling or trading; they're more about understanding, learning and analyzing. Just by following those suggestions, I can almost promise that you'll make better decisions about your finances in the future, even if you stop there. (Note: This info is valuable for anyone who is at least 18 years old.) There are multiple advantages to managing your own investment portfolio; one is that you'll save the annual fees many financial advisors charge; they usually vary from 0.5-2% of your portfolio value. These fees may not sound like much, but if you run the numbers, you'll see that these seemingly "small" figures add up to a lot of money over time. Many people believe that financial advisors who charge fees based on portfolio value enable them to "beat the market", and the fees paid to these advisors are recouped through higher returns. But studies show that beating the market is not the norm. In fact, over the last three years (as of Mar 2025), only 15% of Large-Cap* mutual funds "beat the market". So, if you're invested in a Large-Cap stock mutual fund, and it's not an S&P 500 Index Fund, there is an 85% chance that your investment underperformed the market. i.e. You paid someone to help you underperform the market in the long-term. *Large-Cap: A large-cap stock represents a publicly traded company with a market capitalization (total value of outstanding shares) of $10B or more (often considered a stable and established investment). Performance of Large-Cap Funds vs S&P 500 1 Year | 3 Years | 5 Years | 10 Years  Interactive Chart Years ago, a co-worker told me, "You're probably smarter than your financial planner." That was a real thinker. Over time, we learned enough to realize that investing didn't need to be complicated, nobody cares more about the outcome of our investments than we do, and self-management guarantees that we can save 0.5-2% of our portfolio value each year (because we avoid yearly AUM fees). So we started down the path of managing our own investments and have never looked back. The following suggestions may enable you to increase the likelihood of improving your long-term investment returns too. Step-by-Step Suggestions for Managing Your Investments
Hopefully the suggestions below will enable you to save a lot of money by taking control of your investment portfolio within a year or less. You can:
 Create a Simple List
Example List of Financial Asset Accounts   Add More Info to Your List Following the example below:
  Record the Value of Your Accounts and Funds As shown in the example below:
  Analyze Your Allocations
Sample Asset Allocation Recommendations for Retirement by Age   Analyze Your Stock Holdings
The stock market is a device for transferring money from the impatient to the patient.  Analyze Your Bond Holdings
 Analyze Your Cash Holdings
 Tax Considerations
 Simplify
 Adjust Your Allocations, if needed
 Think About Your Goals for the Future
 You're Managing Your Own Investments
On a more personal note ... Jim's been managing our investments for about 35 years, while I managed our budget. Since retiring, I've been learning more about our investments. This post is a result of my high-level learnings and desire to share the information in easy-to-understand and actionable bites. You may be relieved to hear that Jim has reviewed (and improved) the information. And while we don't pay a regular fee to have someone else manage our portfolio, that doesn't mean we don't seek advice regularly and/or pay for advice on occasion; we do both. Most recently, we paid to talk with Mark Zoril and we regularly talk with our Fidelity advisor (who doesn't charge a fee), as well as friends and family. As I stated at the beginning of this post, we're not professionals and don't claim that this is the only or best way to manage investments. Instead, we offer this up as food for thought and an invitation for you to share what you know. We hope to learn from you. -- Kathy Frequently Asked Questions Q: Why did you document this info?
A: I've been learning more about investing, and this info reflects what I've internalized so far. If you have ideas that will help us increase our returns, I want to hear them. This is my way of testing what I think I know.
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In 2019, I traveled alone from the US to Europe and loved it. The reasons are explained in a post called Expect the Unexpected, although one thing I didn't mention in that post is that my husband prefers trips where things go according to plan, while I prefer a moderate level of challenge, exploration, and surprise. Most of the time this makes us a great team, even though I usually experience travel magic when encountering the unexpected, while his contentment usually comes from avoiding the unexpected. That's why my occasional solo trips work for us, and he travels alone on occasion too. Earlier this month I headed off to Athens, Greece. Given that I enjoy the entire travel experience, waves of euphoria can start as soon as I get dropped off at the airport. But this trip had me a little worried because I didn't really feel euphoric during my flight. (Think "full flight" and "small seat".) So you can imagine my relief when I got off the plane in Istanbul for a layover, and that euphoric feeling descended upon me. Even if I was only in the airport, Istanbul felt new and exotic. I'd watched a few YouTube videos, so knew that the airport is huge and that the most transportation help I'd receive while getting from one gate to another would be moving walkways. Apparently you might need to walk up to a mile between gates! Thankfully, I had a two and half hour layover, so figured all would go well. I also know myself well enough to know that focusing would be my key to success because I'm easily distracted, especially when I'm having fun. We deplaned at Gate D9, and I breathed a sigh of relief to see that I'd be departing from Gate D10, knowing then that there was no way anything could go wrong. So I relaxed and settled in at very nice work area with plenty of electrical outlets and a view. It was just a few gates away from D10, so I could avoid the congestion of people gathering which would start happening before long. While I wasn't right at my departure gate, I was close enough to pack up and be there in a minute when it was time to board. My fun had begun, and I was already posting photos for my family in a private Facebook album and making new friends at the work area. People in airports are usually like people on chairlifts; interesting! Still, I could feel my brain fading given that I hadn't slept in over 24 hours, and even though I was having a lot of fun, the layover felt longer than expected. Because I was so eager get to Athens, and maybe even sleep a bit on the 90 minute flight that would get me there, I headed to the gate about ten minutes before boarding was even scheduled to start. Arriving a minute later, I was initially confused because there was nobody at the gate; literally nobody. I've traveled enough to know that gates change, and flights sometimes board early, so I was glad I'd allowed the extra time and quickly checked the Departures screen. My flight wasn't even listed. Nor was any other flight that departed at the same time (or earlier). You've probably figured this out by now, but I confused the time and had literally missed the flight! The good news, if there is any good news in this story, is that even though I'm a generally excitable person, when I get stressed, I usually become ultra calm and very focused. So even though I was still struggling with denial, I high-tailed it to the nearby Turkish Airlines Service Center I'd seen earlier. At the same time, I was trying to figure out how I'd made this mistake and concluded that the combo of my lack of sleep, the 24-hour time convention, the time difference between Athens and Istanbul, and my lack of sleep made for one bad mental cocktail. Thankfully, I quickly found my way to a long desk filled with service agents ready to help, so I walked right up to a friendly-looking woman and explained that I had messed up and feared that I'd missed my flight. Honestly, I was still holding out hope that she'd tell me there had been a gate change and provide a simple solution, but that's not how things went. Instead, she indignantly asked how that could happen, and the best I could offer was to honestly report that I was having so much fun I confused the time in my head and just missed it. That made her very angry, and while I don't remember exactly what she said, I do remember being left with the feeling that I should have been paying more attention! That seemed obvious, and not really worth driving home in the moment, but I let her express herself completely before asking if she'd be willing to help me get to Athens. She pointed toward some other agents and told me to get in line. The good news is that the line was short. The bad news is that the people being helped by the two available agents were sitting in chairs with open laptops and/or phones in their laps. I wasn't getting the sense that these were fast-moving lines. And it was at this point that I remembered another thing I'd learned on YouTube; Turkish airlines is known for their great food and abrasive service. I had definitely experienced both. I was feeling really stupid, but I also knew that all I could do was resolve the problem and keep trying to make forward motion. The Service Center was busy, and I'd beat a bit of a rush, so to a certain extent I was feeling lucky. And, I had to admit, this was definitely an unexpected adventure, and I already knew it was going to be a funny story that, at the very least, would help my family and friends feel savvy, or at least savvier than me. While waiting in line, I was learning enough to help others who were arriving and feeling as confused as I had felt just a few minutes earlier. I was comforted by talking with a guy who looked very smart and capable after he admitted to having done exactly what I did; becoming distracted and just missing his flight. But I sensed he was traveling on business and didn't have the flexibility I did, so that made me feel lucky. I also spent quite a while talking with an enthusiastic young man on his way to Pakistan to get married. By the end of our conversation, he had invited me to attend his wedding! (I politely declined not feeling like this trip needed much more "adventure".) Finally it was my turn to get some help from a service agent, so I repeated my story, and the typing began. There was no scolding from this agent, an older man, but there was also no sympathy. Many minutes later, after typing the equivalent of War and Peace into his computer, he told me that there was a flight to Athens in the morning, and he could get me on it. While I was feeling a bit desperate, I also felt the need to be smart, or at least less dumb, so asked what seemed like a logical question, "Will there be a charge?" There was a very long pause while he typed some more. During that pause I convinced myself that I shouldn't let $150 upset me, and while he kept typing I decided to increase that amount to $500 thinking that, in the scheme of things, $500 would not change the outcome of my life. So, I have to admit, I was a bit "surprised" when he said it would cost me $721. (My original round-trip flight had only cost $664!) I know from experience that you often have to push people to help you get what you want sometimes, so told him that I did not want to spend that much money. I asked for alternatives, and at the same time looked up the prices of other flights on my phone. I found a flight to Athens that left in two hours, and it only cost $150, so I asked if he could put me on that one. That's when I learned that I was required to change my existing ticket to avoid cancelling my return flights. What?! Given that I was standing in Istanbul, it was not my desired destination, I was not in peak mental condition, and I was struggling to understand what the agent was saying, I decided to cut my losses and just buy the darn ticket. I overheard another agent tell a customer that there are "no hotels at the airport", so, in the end, I just stayed at the airport overnight and tried to get a little sleep. The airport contains quite a few nap/sleep areas and quite a few lounge chairs. So after weaving the straps of my carry-on luggage through my arms, covering my face with a scarf and playing soothing music through my noise-cancelling earbuds, I relaxed and did get a bit sleep while worrying I was going to look even dumber if I slept through the next flight ... which I did not do. The next morning I was at my gate on time, flew to Athens, figured out the metro system, and made it to my Vrbo apartment by noon. By 6:00 pm I'd been out to eat, purchased groceries, and showered. I think I even fell asleep blow drying my hair right before crawling into bed. I wish I could tell you that was the end of my travel drama, but nine days later, just before heading off to bed at 12:41 am, I received a text from Turkish Airlines letting me know that my return flight from Athens to Istanbul had been cancelled. Knowing I wouldn't sleep until that was resolved, I spent the next hour online and finally "chatting" (online) with another Turkish Airlines agent. In the end, I had to depart two days later than planned. So while I lost a vacation day when I arrived, I gained two days going home. I think that means I "won" vacationing, right? :) In case you're wondering ...
-- Kathy  Note: This is not a sponsored post. I purchased all of these products after researching them. A year ago, I traveled from the US to Europe with carry-on luggage. The only real challenge I had was fitting all of my liquids into the required quart-sized bag. I got them all in there, but it wasn't easy, and when they asked me to open the bag during my connection in London, it was a real pain in the neck.
So over the last year I was determined to reduce the number of liquids I use when I travel. I gathered ideas, researched products, and made the following changes:
Update Mar 6, 2025: Tried Shampoo & Conditioner Bars (Kitsch) and liked them! In the future, I plan to try the following:
Related reading:
The ACA (Affordable Care Act, also known as "Obamacare"), provides us with great health insurance at an unbelievably low rate. We're sharing what we've learned about it, in case you find the info helpful.
Remember: We're just a couple of yahoos stumbling through this. We're not experts or advisors :) HOW IT WORKS (as far as we can tell):
Our Experience We've found the sign-up process and "system" to be complicated, and hope that the info provided here might make it easier for you. The first year we used the ACA (2020), Jim spent ~40 hours on the phone* getting it all to work. This year we dug into the details and feel like we have a much better understanding of the hows and whys. Also, this year our rates are 25% lower than last year and lower than they've ever been. We wonder if maybe the "Infrastructure Act" has something to do with this, but don't really know. * In hindsight, this was the result of us asking too many questions. We should have just filled out the online forms and shut up. INCOME Determines Monthly Premium and Some Benefits
Non-Retirement and/or Roth IRA SAVINGS Enable You to Increase ACA Benefits A layoff and start-up experiences led us to border on financial paranoia during our working years, so we stashed savings in non-retirement investment accounts. This enables us to postpone use of our retirement accounts and receive great ACA benefits. However ...
Our Healthcare Insurance for 2025 Healthcare Plan: Anthem Silver Pathway 5000 $0 Select Drugs (an HMO) Premium cost to cover both of us: $2,140.22/month Amount we pay to be on the plan: $111.76/month NOTE: The published individual deductible for this plan is $5,000/person, but because of our low income status, our deductible is $100/person. Max out-of-pocket expenses are also greatly reduced for us. INCOME and BENEFITS: Another data point We pay little because our income is low. We know of a person who is single (in Colorado) who will also be using the ACA in 2025. This person pays ~$700/month for an Anthem Gold plan comparable to a plan that would have cost ~$2,400/month via the previous employer's retirement offering. This friend's MAGI is higher than ours. Obviously, you'll need to run your numbers to figure out what value you may (or may not) be able to get from the ACA given your MAGI. You may be wondering:
Update added Jun 9, 2025: There is talk that the "One Big Beautiful Bill" could change these benefits in the future. -- Kathy P.S. THANK YOU to the friend who casually asked, "Have you looked into the ACA?" back in 2019 when I was lamenting the high cost of healthcare insurance which we were purchasing through our previous employers' retirement offerings. The story she shared seemed unbelievable, but she was credible so we followed up, and now that we've been using it for five years, we're convinced it's real :)
Even before the pandemic hit, my husband and I had decided that it didn't make sense to keep an "extra" car in the garage 24x7. Basically, we realized we both did a fair amount of driving, but rarely at the same time. So last summer we finally got our act together and sold my car. (He agreed to share his car with me :) We also agreed that if it creates any problems, we'll buy another car. We figured that in the event we both needed the car at the same time, one of us could use Uber, or, worst case, we'd rent a car. The plan was to track our expenses to be sure this plan really did make financial sense in the long run. Nine months after selling my car, and almost a month after being fully vaccinated, we finally encountered a conflict. So I Ubered to lunch at a nearby restaurant yesterday to meet up with friends. The roundtrip transportation expense was almost $30; that was a lot more than I was expecting! So the first thing I did when I got home was calculate and compare car expenses over the last three years. Of course the pandemic makes it hard to know if today's calculations are useful in terms of predicting tomorrow's expenses, but here are the (very basic) findings:
That chart is pretty basic. It doesn't include oil changes, repairs, and gas. Nor does it reflect the fact that we've turned the cash we got from selling a car into an apperciating, instead of depreciating, asset because we invested it.
Afterward I asked myself if there was any downside to the experience. I guess I didn't get to pick the radio station, but the interesting conversation may have been more enjoyable than anything I'd have heard on the radio. I was also little anxious about whether or not the car would arrive as promised and whether or not I'd get to lunch on time. The car did pick me up, and right on time, but I arrived 25 minutes early for lunch. Note to self: There's no need to add "buffer time" to the ride. There is also an upside to all of this; my husband's car is way nicer than mine was, so in a way, many of my driving experiences have been upgraded, although I do have to adjust the seat and mirrors each time I get in the car. (Next up: I need to figure out how to use the automatic seat adjustment feature, I guess.) And given we have different fill-up philosophies (he doesn't like to go below 1/8th of a tank and I like see how far below "E" the dial can go), I suspect I may never have to pump gas again :D Assuming an average cost of $30 for round-trip Uber rides, we'll need to use Uber more than once a week and then blow through all the money we've invested from the sale of my car before we lose anything with this plan. I just can't imagine that happening. Having grown up in the Motor City, never in a million years did I imagine giving up my car at 58. And yet here I am. -- Kathy
Since retiring, I've been to Europe a number of times. Traveling seems very different now than it did while we were working and everything felt rushed. These days, I take it slower ... just because I can. And I find it way more enjoyable. Here are some things I've learned along the way. These are tips I haven't seen many other places. Maybe you'll find them useful. (It's also worth noting I've taken a couple of solo trips which require me to solve all of my own problems.)
-- Kathy
A fair number of people ask, "How did you know you had enough savings to retire?" Here's our short answer:
During our entire careers, my husband and I both worked in the IT industry and often for the same company. That's a risk. And after he was laid off in 2001, things felt even riskier. That probably caused us to be better savers than we might have been otherwise. The possibility of being laid off felt like a constant threat from that point forward. In late 2014, business conditions and things I was hearing at work made me feel especially vulnerable. I asked my husband, who manages our investments, if I'd need to get another job if I lost my current one. We were both pretty happy with the jobs we had, and at 52 and 53 we hadn't really been thinking about retirement. He asked, "How much money do you think we need every month ... for the rest of our lives?" (He manages the investments, and I manage the cash flow.) I threw out a number that pretty much aligned with our current spending rate and then assurred him I was capable of spending more. (I knew I could spend less too, but that wasn't my preference.) Three months later he gave me an answer: "We could retire right now!" In hindsight, he figures he built the mother of all spreadsheets that pretty much replicated the tools you can find online. If you're asking yourself the same question, your time will probably be better spent finding a tool rather than building one yourself. The answer to my question changed everything; suddenly we were truly working for fun. I lasted another two years and he lasted another three. We retired at 54 and 55; and so far, so good. We have found that a lot of the things we're enjoying most don't take a whole lot of money, but we think it's possible that may change over time. But as of right now, no regrets. In fact, we're having the time of of our lives. -- Kathy Related reading:
When I was in my early 30s, I commented to a co-worker that my husband and I were planning to meet with a financial planner. The co-worker was a little younger than we were and said something like, "Just remember that you're smarter than the financial planner." My intelligence isn't something people comment about much, so the comment caught me off-guard. I went home and repeated it to my husband.
Since then (25 years ago) I've met some pretty smart financial planners, but my co-worker's comment launched a string of events that resulted in my husband and I continuing to manage our own finances and investments. Nothing we do is terribly sophisticated, but nobody understands our goals better than we do, and nobody understands our finances and investment choices better than we do. And, at least so far, it seems to be working well for us. -- Kathy Related reading:
When many of us retire, we're as qualified to add value as we've ever been. And suddenly we have enough time and "space" in our lives to think big in terms of helping others. Here's a story about how we ended up using our skills and experience to help others in an unexpected way. Hopefully this story will encourage you to jump in when you think they can help instead of just watching and waiting from the sidelines.
On a Saturday morning in January of 2018, my YouTube feed served up a video of brave women and girls speaking during the sentencing hearing for that disgraced gymnastics doctor. Their stories and courage were impossible to ignore. You may recall that the hearing took place in Michigan and that the doctor worked at Michigan State University (MSU). He'd also served as the doctor for the US Women's gymnastics team from 1978-2016. Having grown up in Michigan, the story hit close to home, and I followed it more closely than some. The University's response to the crisis was confusing and filled with missteps. Having spent part of my career in marketing and communications positions, the university's actions were counterintuitive to everything I'd learned about crisis management. As the university stumbled, I waited for alumni and students to speak up, but nearly all I knew remained silent. It was frustrating and confusing; it seemed like somebody needed to support these survivors, but neither the school, nor its alumni and students seemed to know how to help. Out of sheer frustration, and in an attempt to be helpful, I created an outline for a "Crisis Management Plan" which I emailed to the Acting President of the University. (The previous President had resigned as a result of the situation.) Surprisingly, he responded to the message quickly by expressing thanks and informing me he'd pass the info along to the external firm they'd hired to help manage the crisis. I was surprised to get such a fast response, and that led me to believe that my ideas might be valuable. Unfortunately the university's missteps continued, and people continued to remain silent ... for nearly a year. As new info emerged, things seemed to go from bad to worse. One positive thing did occur; in December of 2017 a "Healing Assistance Fund" was established by the University's Board of Trustees. The fund was created to cover counseling costs for the survivors and members of their families. In February of 2018 an Interim university President was appointed; the former Governor of Michigan, John Engler. Unfortunately, in December of 2018 Interim President Engler announced that the remaining money in the Healing Assistance Fund ($8.5M) would be "redirected" to pay down university debt; another point of confusion, especially among the survivors. Initially I assumed that the survivors must have misunderstood the intent of the Fund, so dug into the situation to learn more. What I learned was troubling; it was clear that MSU had truly broken a promise to these survivors and their families. Again, I assumed that MSU alumni would step up to help get the situation resolved, but with only a few exceptions they continued to remain silent. It seemed likely that MSU alumni and the residents of Michigan cared about the survivors and would want MSU to honor its commitment, so after discussing the situation with my husband and adult children, we hatched a plan to provide a simple way for people to express their concern by creating an online call for the university to honor their commitment. It was called MSU Honor. We wondered if the effort would go anywhere and feared that only a few friends would be willing to sign on. The website was created quickly and a Twitter account was established. From start to finish, the set-up took little less than a day. On a Sunday afternoon in mid-December of 2018, the website was ready and announced via Twitter. As I clicked "Tweet" for the first time, I jokingly said to my husband, "Get ready for the names to start pouring in." We laughed and prepared to rest. But about two minutes later a name arrived. Then two more. Then even more. By that evening there were over 300 supporters. We were literally unable to post the names as fast as they were coming in, so eventually we semi-automated the process for posting new names. For the next eight weeks, which included the Christmas and New Year holidays, posting names and processing related activities like press inquiries consumed us. Five of the eight University Trustees added their names, along with the current and a former Governor of Michigan, other leaders, MSU alumni and students, many survivors, and other residents of Michigan as well as the US. It would be nice to think that this effort forced the Board's decision to re-establish the Healing Fund when that happened in February of 2019, but maybe it's more likely that it simply provided a focal point and amplified voices during a confusing and frustrating time. Either way, I think the effort helped and our exeprience and time provided some value. Maybe retirement is just the beginning in terms of putting our experience to work. -- Kathy Related reading:
Disclaimer: I am not a financial advisor. The purpose of this post is simply to encourage others who want to learn more about managing their own investments.
Previously, I suggested that more people should consider managing their own investments because it is Easier Than You May Think, and it's like having a very part-time job with a very high compensation rate. If you're considering doing this, you'll want to find an investment approach that aligns with your financial goals. My goal is to be sure that my wife and I have enough money to support our comfortable lifestyle now that we're retired. This post compares two investing approaches. Some might consider these summaries over-simplified, and they probably are, but they'll provide a good foundation for readers who want to get started. The info isn't meant for people who've been managing their own investments for years, although I'd love to hear their input. Vocabulary
Approach 1: Traditional Investing Traditional investing involves purchasing individual stocks and/or mutual funds based on various quantitative and qualitative considereations. Typical quantitative considerations include revenue growth, earnings, and current stock price. Qualitative considerations can include things like industry trends, market dynamics, and even cultural shifts. You'll want to ask yourself questions like, "Are people drinking fewer soft drinks as they become more health conscious?", "Are brick-and-mortar stores disappearing as people do more online shopping?" and "Are others likely to copy the Uber model and apply it to different consumer services?" Then you'll want to identify companies that are likely to succeed. "Success" will probably be defined differently by each company. It could involve profitability, growth, innovation as well as other things. In the end, you'll want to purchase stocks that the market thinks will do "well" (since the market determines the price of the stock). The benefit of this approach is that there is potential for large gains ... if you buy the right stocks and/or mutual funds. The risk associated with this approach is that there is potential for large losses if you pick the wrong stocks and/or mutual funds. Some people don't like the potential volatility and risks associated with owning individual stocks because the possibility of large gains is coupled with the risk of large losses. To reduce the possibility of extreme outcomes, some invest, at least partially, in mutual funds. Just like stock, you'll want to do some research before selecting mutual funds. You'll want to ask yourself (and research answers to) questions like: "Do I think software is poised for a big gain?" and "Since electric vehicles seem hot, should I find a mutual fund that focuses on those?" You'll also want to ask yourself: "Is this particular fund being managed by someone with a good track record?" and "Is the fund efficiently managed?" In Summary Traditional investing delivers the possibility of large gains (e.g. Tesla has risen 7,000% in 2020 as of today). It also requires:
Approach 2: Low Cost Investing Low cost investors focus on purchasing mutual funds instead of individual stocks, and they specifically look for mutual funds with low fees and operating expenses. (Since mutual funds require specialists to create and manage them, there are management/operating costs and fees associated with them.) Low cost funds are set up to run with very little management by humans. This is achieved by creating funds whose components mirror common market indices such as the S&P 500 and Nasdaq (thus the term "Index Funds"). The benefit of low cost investing is that it usually delivers consistent, moderate returns over long periods of time. And those returns add up. The downside of this approach is that big increases in value in specific companies or even market sectors rarely result in dramatic gains to an indexed fund. In summary Low cost investing is most likely to produce steady, moderate gains instead of rapid value fluctuations. It's less exciting when the market rises quickly and less scary when the market drops quickly. Which Style Is Right For You? Some people prefer traditional investing because it's easy to understand and/or they enjoy the "thrill" associated with it. Personally, I'm not a fan for the following reasons:
The "father" of low cost investing is the late John ("Jack") Bogle, the founder of Vanguard. Bogle's philosophy for investing and building wealth includes investing in low cost funds, investing early and often, and keeping investments simple, among other behaviors. Information about the Bogleheads® investment philosophy makes for interesting and valuable reading. Low cost investing methodologies are unlikely to enable you to tell dramatic financial stories at cocktail parties. (e.g. You won't be able to talk about buying Tesla at $14/share now that it's at $695/share.) But Low cost Investing may mean you no longer need to work when you're 70. (And it may prevent you from needing to lament, "I was absolutely positive Enron was my ticket to early retirement.") -- Jim Related reading: |
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