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Lurking in the shadows of the 2019 global market rally is an inverted yield curve in bond markets.
Time to panic! Right?
Not quite yet…
We’re all index investors, so we shouldn’t necessarily care about a short term market rally or complex financial terms like “yield curves.” We care about consistent steady returns over the long term!
[Read more…] about What is An Inverted Yield Curve?If you can max out your 401(k) you definitely should, right?
Not always. There are a few things (five, to be specific) you should consider before doing so, and we’ll walk through exactly what they are in the article below.
But first, we’ll highlight what a 401(k) is for those not 100% familiar with this amazing retirement tool.
[Read more…] about When (and When Not) to Max Out Your 401(k)A 3 Fund Portfolio is a type of lazy portfolio that contains only three investments.
It’s called “lazy” because of how simple it is to set up and manage. Though, for once in your life, investing with a lazy portfolio is a situation where being lazy can pay off.
A 3 Fund Portfolio historically has a higher probability of providing superior growth and returns compared to actively managed portfolios. This is because actively managed mutual funds have a tendency to underperform the market, while a lazy portfolio simply attempts to match market returns while keeping costs low.
And as we know, a basic index investing approach that matches the market performance through a diversified portfolio is a winning strategy over the long term.
The added beauty of the Three Fund Portfolio is its simplicity – it’s easy to set up and manage. Anyone can do it on their own.
[Read more…] about 3 Fund Portfolio: The Lazy Way to InvestThere is some debate on whether equal-weight index funds perform better than their counterpart – market capitalization-weighted (cap-weighted) index funds.
Cap-weighted index funds are the more popular and more widely available option. Likely, if you’re invested in an index fund, its a cap-weighted fund.
[Read more…] about Equal Weight Index funds OverviewIndex investing is a great strategy for beginners. It takes the complexity out of stock picking because you are buying the overall stock (or bond) market, not individual stocks. It guarantees your returns will be similar to the market you are looking to mirror (i.e., the S&P 500).
Many expert investors, like Warren Buffett, agree with and promote index investing. As Buffett told CNBC, “Consistently buy an S&P 500 low-cost index fund… I think it’s the thing that makes the most sense practically all of the time.”
[Read more…] about What is Index Investing: A Beginner’s Guide