Wednesday, December 17, 2008

Do Better with Index funds

On CNBC this morning, John Vogel, the founder of Vanguard and index mutual funds had two very interesting statistics.

1.  The performance of the Total Stock Market Index is better than 80% of actively managed stock mutual funds.

2. The performance of the Total Bond Market Index is better than 85% of actively managed bond funds.

Why are you wasting 2.5% to 5.75% of your hard earned money on managers who can't beat an index?

If you have not done so already, switch to low cost, tax efficient index funds. 

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