In my latest column, I discuss the popularity of index funds and the advantages these funds can bring to a portfolio. If you follow the Coffeehouse Investor or believe in its three principles of investing, none of this is new to you. However, the theory isn’t just about index funds. I elaborate in my column, “…index funds are not some magical investing tool that will make your life any easier in addressing the important components of your financial plan. Heck, I could invest in a low-cost, low-turnover, actively managed fund and basically expect the same results as an index fund over the next 20 years.
The elusive, magical investing tool can only be found in you, in your ability to sock away enough money to reach your retirement goal, in your ability to live within your means throughout retirement, and in your capacity to stay committed to your investments during the next bear market when financial pundits are predicting an end to the world.”
I started this Coffeehouse journey over 20 years ago to make a difference in investors’ lives. Coffeehouse Investors recognize that their portfolios are not measuring sticks for self-worth, but simply a resource that accentuates who they already are in relation to their families, friends, co-workers and communities.
Have you found your magic investing tool yet?