Firing Your Adviser is Easy

Becoming a winning investor often means adopting a new investment philosophy that’s in conflict with your adviser’s self-interest.  This is particularly true when you decide to transform a high-cost actively managed portfolio into a low-cost index fund strategy. The stress of firing an advisor can put an extraordinary strain on a person if the adviser [...]

My Grandson’s First Index Fund

Our first grandchild is two weeks old and his dad is already concerned that he’s behind on saving for little TJ’s college. I recommended we open an economical 529 plan that offers low-cost index funds. This investment strategy has the highest probability for accumulating the most money for college in 18 years − and there [...]

Indexing Hero Charles Ellis

Charles Ellis is a legend among index fund investors. He holds the honorable distinction as being the first industry insider to publicly proclaim that most active portfolio managers do not keep up with the benchmarks they are trying to beat, and that investors are better off in low-cost index funds. Ellis’s admission occurred in 1975, [...]

Fantasy Alpha and Your Portfolio

Passive index fund investing is a dull conversation at any party. No one attracts a crowd by talking about this prudent, successful, watch-the-grass-grow strategy. It’s much more exciting and intoxicating to listen to tales of big winnings from speculation because they create alpha fantasies. You could be next! Does seeking an alpha fantasy make sense [...]

Star Fund Managers and Flame-out Rates

Will today’s best mutual funds become shining stars or shooting stars? Most mutual fund managers are shooting stars – they have a couple of bright years and then flame out. A handful of managers are shining stars that continue performing well into the future − but it’s not worth trying to find them. The difference [...]