When it comes to game changing developments in finances, the advent of low-cost index funds has to be up there. Jack Bogle of Vanguard is largely credited with being the creator of index investing and he’s on the Mount Rushmore of personal finance, as far as I’m concerned. Index funds offer a very compelling sales pitch: Instant investment in the stock market (whatever the fund represents) Exceptionally low fees (often less than 0.05%) Low maintenance But are there risks to index funds? Are there any reasons why we shouldn’t be using index funds? Today, I want to play a little Devil’s Advocate and point out some of the potential risks of index investing: Table of Contents Index funds do not replace financial planning High concentration in technology You can’t beat the market You lose some control on taxes You may get lazy Not all index funds are created equal Index funds could get TOO big Are index funds worth it? Index funds do not replace financial planning Wh
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