I’m going to try to mislead you, but it’s for a very good reason. What I have for you is a U.S. stock fund that not only has beaten the S&P 500 index, it’s nearly certain to continue doing so in the long run. For now, I’m going to call this mutual fund the Super-Secret Fund, or SSF for short.
For some time now, actively managed mutual funds have been underperforming index funds that essentially own shares of all the stocks in the market. That’s because the lower costs of index funds give them huge advantages over the high-priced active funds. Though I’ve been investing in index funds for decades, I’m rather surprised by their more recent popularity. My indexing approach was once rare, but now a full 37 percent of the money in U.S. stock funds is in index funds. With more and more money flowing out of managed funds and into index funds, can indexing become too big?
The U.S. Supreme Court this week sent a strong message to employers offering 401(k)s: You can’t just pick investments for the plan and then forget about them.
As tax season draws to a close for another year, you may be among those feeling the pinch from taxes paid on investments. I admit that paying taxes is not exactly my favorite thing, so I always look for ways to be more tax-efficient. Here are three things you can do to keep more of what you earn:
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