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Index Funds Best For Do-It-Yourself Investors

Thursday, July 5, 2012 - 9:23 AM
By Scott Burns

Index funds like the Vanguard 500 Index are for "do-it-yourself" investors— people who make their own decisions. Some people worry that this takes a lot of time and knowledge but my Couch Potato portfolios have proven that you can manage your own money without any particular knowledge.
ShorebreakShorebreak2,683 posts since
Apr 6, 2010
Rep Points: 14,546
1. Thursday, July 5, 2012 - 1:51 PM
Many keys to prudent investing. Choosing a low-cost index fund is good for starters, but choosing a low-cost "balanced" index fund is the key. True "do-it-yourselfers" build a portfolio with low-cost index funds, low-cost bond funds, and CDs.

CDs, by the way, have the lowest ER around (as in zero), the lowest duration (as in zero), and the lowest credit risk (as in zero).

Even at these horridly-low rates, CDs are the best fixed-income product out there, these days. Just my opinion.
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 944