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Lukem....are you saying basically that me, the investor would become the manager of various index funds that I have? Just trying to follow your question.

 

Although I'm not a big fan of the oversold whole life policies, it does come down to the return on your investmenT whether it's good or not.

 

I think lukem is specifically referring to using Vanguard's index funds and managing them yourself as your investment portfolio. It's what I do and what i think others on here do. It may not be the sexiest method of investing but when it comes to my money I'll take common sense over sexy any day.

 

When I met my wife she had a LOT more than this. I made it clear if marriage were to happen the first thing we did was to eliminate this. 3.5 years later she has it all paid off!

 

Understood. Sexy....shmexy...as long as it works.

I think what you guys are doing is probably beyond what most can do, in time, patience, knowledge and self discIplne though.

I think understanding about investments is a very important subject though. We should be smarter about finances period.

 

Let's boil this down. Nobody beats the market over the long run. Index funds are the market. Buying index funds is a cheap way to invest. Taking out variables like tax implications and short term strategy how is an individual self managing a portfolio of index funds inherently a bad decision?

"It just is" or "you need a CFP" aren't good answers.

 

As long as they know and accept the risks, nothing.

 

Care to quote where I said "index funds are bad investments for most people"? I never said any such thing, or even anything close to that. Maybe that is the problem, you folks are not understanding what I'm trying to convey.

My point is most people DO NOT KNOW really what is good for them, investment wise. Sure, you can buy a decent fund and it can grow, but what funds did you buy it with? Cash, pre-tax, aftertax, rolled over funds from somewhere....? And was that the right thing to do with that money, or were you better off using different funds, or after tax instead of pre-tax, or do you really need that type of investment, maybe that investment will kill you in taxes where a different one would not have in the long run! Every hear of Medicaid? Well, Medicaid TAKES YOUR MONEY when you are elderly and are in need of care, instead of giving you money depending on how your money is invested, or in an estate, or in a trust... Maybe you would be better off protecting that money along with investing it...

The summary is, simply picking a fund that you "think" is a good fund first might not actually be what you think it is, and second it might not actually be what you need or should be doing. It all seems so simple but there are LOTS of things to consider, and the average person and even the well educated on the subject often do not see. This is where a professional can help you, that's all.

Again, would you have your tree guy fix your plumbing?

 

That's exactly the problem, your "taking out" the most important parts!!

That's like saying: "My tree guy is fixing my plumbing. He's perfect for the job except he does not know how to weld or sweat a pipe, but who cares."

 

Amen on both accounts! In addition, they are also assuming it is/was the right thing to do with their money in their situations to meet their goals. It could be, but there are a lot of variables people don't think (or even know about) often.

 

A couple points.

Coomunication is a two way street. It could also be that you may not be conveying your message in a clear and concise way.

Just because a person has one trade doesn't necessarily mean he cant do another as well or better than the other (tree guy vs plumber)

As we keep discussing this please let us all enjoy our difference of opinions without letting it become a pizzing match.

 

Very likely! My writing, spelling, English.... is TERRIBLE!