In Today’s Podcast we cover:
Avoiding fees when investing
How to invest your 401k? Nobody knows!
Index funds and low cost ETFs are the way to go
Readings that changed our investing trajectory
Who outperforms the market? Nobody. Hold the course and buy the entire US market.
You aren’t going to find a brilliant financial advisor who can outperform the market
Running an investment scenario and seeing the impact of fees on a 40-year return
Scenario 1: $100k into VTSAX and letting it ride for 40 years = $2.13 million
Scenario 2: $100k into VTSAX but hiring an investment advisor. 40 years = $1.46 million
Scenario 3: $100k into actively managed fund + investment advisor. 40 years = $1.03 million
VTSAX isn’t the only option, but keep in mind that FEES MATTER!
This strategy allows us to sleep easy.
Buying “US” companies also gives you exposure to international markets
Warren Buffett’s advice to his trustee: Invest 90% of his estate in a “very low cost S&P 500 Index Fund (I suggest Vanguard).”
Links from the show:
The Stock Series by Jim Collins
Dave Ramsey Investment Calculator
VTSAX – Vanguard Total Stock Market Index Fund
Berkshire Hathaway Annual Shareholder Letters (essentially a free MBA!)
Books Mentioned in the Show:
The Simple Path to Wealth by Jim Collins
The Little Book of Common Sense Investing by John Bogle
Tweetable Quotes:
Reading those articles (Stock Series by Jim Collins) changed the entire course of my investing life.
The likelihood of you finding that brilliant financial advisor is as close to zero as possible.
What we’re saying is, FEES MATTER.
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