Looking for a boring investment
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I love this quote from The Four Pillars of Investing (affiliate link):
If indexing works so well, why do so few investors take advantage of it? Because it’s so boring. At the same time that you’re insuring yourself decent returns, and minimizing the chances of dying poor, you’re also giving up the chance of striking it rich. It doesn’t get much duller than this. In fact, one of the most deadly investment traits is the need for excitement.
I don’t mind the idea at all of a nice “boring” investment that maximizes my chances for decent returns and minimizes my chances of dying poor. I’d rather live rich. (Both now and in the future, ideally.)
So the next thing on my investment list is to begin investing in an index fund. I’m thinking maybe one from Vanguard, because of their low fees and their good reputation. Do you have any money in index funds? If so, how has your experience been with the companies you are with?
May 29th, 2007 at 6:36 am
I have owned Vanguard Index funds since the mid 90’s. I have been very happy with the performance of the funds and customer service with Vangaurd. I now have the majority of my retirement funds with Vanguard. The total return for my retirement account last year was 17.6% and averaged 14.7% the past 3 years. I don’t think you will find a better investment company.
May 30th, 2007 at 5:08 am
I don’t do index funds, but I think Lifecycle funds are just as boring and have the same long-term security along with the bonus of automatically moving toward short term investments near retirement. I use T.Rowe Price 2040 and have gotten an average annual ROI of %17 for the past 4 years