It is nearly impossible for active managers to beat the market over the long term after taking management expenses, transaction fees, taxes, and risk into account. Individual investors don’t have the time or resources to compete with institutional investors. The only rational path for individual investors is to invest in passively managed index funds. Continue reading Investing for Retirement: Actively Managed Investing
Even if you aren’t a history buff, you should have a basic understanding of financial history so that you aren’t surprised by ‘unexpected’ financial downturns. When these downturns inevitably occur, you will be able to stick to your long-term financial plan. Limiting your research to just the past 100 years, financial history evidences significant volatility for both stocks and bonds. Using recent history as a rough guide, you should assume that similar downturns will happen again in the future, even if you don’t know exactly when they will happen.
Continue reading Investing for Retirement: Recalling the Lessons of History
Contents Overview Defining Your Investment Objectives Building Your Net Worth by Budgeting, Saving & Investing Compounding, Inflation & Real Returns Controlling the Costs of Your Investing Risk, Return & Time Market Risk Other Types of Risk Longevity & Mortality Risk Health Risk Event Risk Tax & Policy Risk Investment Return Time Recalling the Lessons of History Predicting the Future Financial Market Efficiency The Efficient Market … Continue reading Investing for Retirement: Table of Contents
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