No. of Recommendations: 0
Welcome, and thanks for asking.

But I notice that you do not recommend managing this yourself such as in a Foolish Four? How come?

I am truly lousy at picking stocks and just as bad at picking stock pickers. All the hot funds turned to ashes as soon as I got in. I went broke (actually a negative balance in my account) at about age 40 listening to someone who "knew how select stocks to beat the market."

Since then, I've been an indexer, betting that efficient market theory is correct, or so nearly correct that its imperfections don't matter. The sad thing is that I was exposed to efficient market theory in graduate school in 1968, at age 28, and just didn't get it.

Through index investing, I did well enough to retire in about twelve years (at age 53) and to enjoy a rising standard of living in the following seven years. Indexing gives me nothing to brag about socially, but my purpose in investing is to continue achieving the market return with minimal expenses and effort on my part. This leaves plenty of time for my joyous retirement.

Here's some folks who agree with me: "Where Have the Geniuses Gone?" "Did you beat the market? Most investors who say they do are just kidding themselves." (Course 3: Introduction to Index Investing) "Everyone wants to beat the market. Unfortunately, it's more difficult to do than you might think — especially over the long term."

the grizzled Chips, inveterate indexer, retired and flourishing since 1993
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.