Join Early Retirement Today
Thread Tools Search this Thread Display Modes
The Elegance of Indexing
Old 01-22-2018, 12:23 PM   #1
Full time employment: Posting here.
Join Date: Aug 2013
Location: North
Posts: 878
The Elegance of Indexing

Another pro-indexing article, from the big dawg Mr Shwab himself adding context.

There’s no shortage of literature discussing the difficulty of outperforming the market on a consistent basis. In the popular book, “A Random Walk Down Wall Street”, Princeton economist Burton Malkiel argued that a “blindfolded monkey” has just as good a chance of outperforming the market as a market professional. While some individual stock pickers do beat the market each year, data from the Schwab Center for Financial Research illustrates how difficult it is for actively managed funds to deliver outstanding results year after year.

Same reasons most here do it I presume, low-cost, simplicity, buy the whole market, and its hard to consistently actively beat market etc.

AA (Stock/Bond/Cash ): 99/0/1% MIX (Small/Mid/Large): 50/25/25% BLEND(US/Foreign): 100/0%, REIT (Real Estate Equity): 50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-22-2018, 03:02 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
Join Date: Mar 2007
Posts: 10,200
I'm stickin' with the blindfolded monkey. No need to pay him 1%, he works for bananas.

Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-22-2018, 06:29 PM   #3
Full time employment: Posting here.
Red Badger's Avatar
Join Date: Jan 2017
Location: Piedmont Region
Posts: 588

I'll let others believe they can beat the hoe-down market. I just want to hang outside and pine for a sweetheart that's only trailing a smidge.
Never let yesterday use up too much of today.
W. Rogers
Red Badger is online now   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Alternatives to indexing (alternatives to cap weighted indexing) jIMOh FIRE and Money 7 08-31-2010 08:52 PM
Happy BD Indexing, thanks to one J. Bogle mickeyd FIRE and Money 0 08-31-2006 04:13 PM
indexing SWR to inflation or to valuation perinova FIRE and Money 16 05-15-2006 05:48 PM
Chalk one up for Indexing HFWR FIRE and Money 5 01-23-2006 06:52 PM
Is indexing good? greg FIRE and Money 123 12-13-2005 05:21 PM


All times are GMT -6. The time now is 06:45 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.