Why Mutual Funds Over Index Funds?

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[raim-jhhg]

I'm glad this kid had the intelligence to call George out on his 12-month analysis. That's called lying with data. The caller's data was actually accurate. The problem is the Ramsey team has a conflict of interest. There are MANY things the team does well. Investment advice is not one of them.

[E.GCreates]

51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025

[kyleinpa]

If George didn’t have to stick to Dave’s script, he would absolutely tell people to buy index funds.

[bobbypoynter]

You can tell this kid got them in a corner with this one. Index funds often out perform mutual funds because of lower fees and the returns are consistent.

[jimmymcgill]

So George just blew off this call at the end, and said it was not about index fund vs. mutual.
Yes it is. That is the callers question. That's the whole point of the call.

[michaelwilson]

This caller should be giving financial advice to George and John.

[livingunashamed]

This caller nailed it, index funds are much better. Its a joke paying 1+% in fees.

[reaccionapuertorico]

Index funds all the way. A “small 1% fee” cost you $200k plus over your investment life.

[isaacl]

You can hear George struggle after the guy asks why we are using a 12 month study lmao

[k_kelsey]

This is one of the many points where the hosts engage in intellectual dishonesty. George knows damn good and well that index funds are the superior product for the vast majority of folks. Ramsey advice is excellent for getting out of debt. As far as investing or retirement planning goes, listeners beware. The advice is largely outdated and inflexible, bordering on obsolescence.

[sandrateer]

Sounds like Dave Ramsey may need to hire the caller, Matt.

[harlemtodd]

I agree with the majority of advice given on this show, except for this. Jack boggle in the founder of vanguard and he will tell you to invest in index funds, warren buffet is the richest and most talented investor ever and he will tell you to invest in index funds. Pick the ones with the lowest fees and the most amount of companies, and you will out perform everyone who claims that they can “pick stocks” or “pick people who can pick stocks” over a long period of time.

[vivdtyd]

This kid spot on, calling bs on George here. No one can predict which funds will outpace an index fund. All speculation.

[huskiefan]

George is not accurate. The SPIVA report shows only 40.3% of active mutual funds outperformed the S&P 500 over 1 year. Same report also shows only 12% of active mutual funds outperformed the S&P 500 over 15 years. Good luck picking the good ones, haha! 😂 I’m 100% S&P 500 index funds. You never have to constantly buy and sell any funds over the years, it’s literally one fund. Just buy weekly and never start to sell until retirement. You’ll be a multimillionaire if you start in your 20s. You’re welcome!

[gimmemoney]

Caller is absolutely right. It is intellectually dishonest use a 12 month span as evidence that mutual funds outperform index funds over the longterm.

[Mc.flyyy]

Index funds all day. VOO for 30 years and call it a day. Mutual funds are dinasaurs and have a place in a museum lol. I can beat the market. VOO and IBIT in a 2 fund portfolio. Or 3 fund VOO, SCHD and IBIT imo

Or QQQ or QQQM incorporated into it.

Matt has the right questions that they couldn't really eleaborate or answer. Well done.

[fishroy]

If you won't name the funds you're in it's probably because you know they won't beat index funds long term

[roburb]

He recommends Mutual Funds and then will point you to a "smartvestor" pro. There is no valid reason to choose a Mutual Fund over an Index fund, especially with the higher fees. It's been proven over and over again; managers fail to mirror the market far more often than they actually beat it. It's a fact, and we know George loves facts :) Who cares about a 12-month period? love this kid, he is schooling them at their own game!

[natewilliams]

George has to say this or Dave will publicly shame him again

[kyleinpa]

Anyone who makes a living off of the fees from active mutual funds will never recommend index funds that don’t pay those fees.