April 1, 2010

Mirror The Index's And Save Money

Fact - over 90% of financial professional money managers cannot beat the S&P 500 nor the Dow Jones 30.

Fact - neither can you, your friend, your stockbroker, financial advisor of financial planner.

Fact - with a stockbroker, advisor or planner, you will pay a lot in fees, sometimes 1%-3% just to get the same or lower returns. 

See the chart to the right, VTI (blue) and Dow Jones 30 (red). VTI is vanguards total market return etf which I own personally but any market based etf or mutual fund will do. They all mirror the indices as you can see which will outperform over 90% of the so-called financial professionals who will charge fees for that underperformance!

The fees on this particular etf are .07%, thats right, less than 1/10th of 1%.

Stop being the 'stupid money' stockbrokers refer to when you open up your account with them and start being the smart money who beats 90% of all investors and pays less to do it.

1 comment:

  1. Since I have been investing, I have owned indexs and done very well.
    Thanks for confirming what I have always thought.
    Great blog, I will order your book today.