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The Elegance of Indexing
Old 01-22-2018, 01:23 PM   #1
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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 ): 97.5/0/2.5% MIX (Small/Mid/Large): 25/25/50% 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.
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Old 01-22-2018, 04:02 PM   #2
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I'm stickin' with the blindfolded monkey. No need to pay him 1%, he works for bananas.

You probably mean principal not principle. Judgment only has one "e".
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Old 01-22-2018, 07:29 PM   #3
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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
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