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Investing/Strategies / Retirement Investing
|Subject: Re: Income Planning Assumption||Date: 6/6/2007 9:34 AM|
|Author: telegraph||Number: 57796 of 75626|
If you are just a passive, buy-and-hold type, you will not do particularly well. On the other hand, if you are intelligent and aggressive, and willing to go short in the case of another recession (which does not appear likely at this time), then you can do much better. "
If that were true, just about every 'managed fund' that does intelligent and 'aggressive' selection of stock, with information that the 'average investor' does not have access to, the managed funds should ALWAYS beat the index funds.
In reality, 90% of all managed funds fail to meet low cost index funds over 20 years, and many of those that do are there because of 'survivor' bias - all the others have faded away, or been merged into something else to hide their horrible performance.
I always recommend Burton Malkiel's book, A Random Walk Down Wall Street. Debunks all the 'systems'.
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