Index Funds are for LOSERS (Seriously)

Index funds like an S&P 500 index fund will underperform other investments each and every year. It will underperform countless stocks and even other actively managed ETFs and mutual funds. To build wealth, you have to be willing to accept that other investors will outperform your portfolio each and every year. The good news is that you'll likely outperform them every decade.

#indexfunds #investing #RobBerger

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ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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[mikeraz]

Index funds outperform the majority of hedge funds

[FelineAirstrip]

I have about $250k distributed across various investing accounts, with 35% of my capital invested in an IRA and 25% in index funds. In Q3, 2023, I suffered a great deal. I'm just searching for methods to get better in 2024 right now.

[TwinJalanugraha]

I have $1.2 million to prove that index fund has been the best.

[easterlake]

My wife and I are retiring this year with over $2, 000, 000 in tax deferred investments.
Up until 3 years ago we were 100% in the S&P.
During bear markets we had a perfect didn't look at our statements.
When the 2000-2002 bear hit, we didn't look at our portfolio for nearly 5 years. Just kept buying at low prices.
By the way, I went to 65% S&P/35 fixed in 2018. 2019 the S&P 500 went up 31%. Oh well, if I had to do it over, I'd to the same thing.
I do "play" with about $50, 000. I purchased CCL and US Oil after Covid crushed them. We'll see!

[CynthiaByrd]

I love getting paid to hold an asset, especially while it grows in value. One of my favorite ways to do that is by holding dividend paying stocks. Nothing like a dividend index funds to give you diversification AND income! Gotta love it. $192, 000 of passive income made in 2022.

[Jack_C_]

People will always tell you when they win, but seldom tell you when they lose. Talk to any gambler, they all seem to win but we know that isn't the case.
There are very few (if any) get rich quick schemes but index funds are a get rich slow scheme and it works.
How do I know, I'm that guy that you talked about. 40 years after leaving school, my wife and I are now happily retired and enjoying life.😀

[dunk]

If I could go back in time I would start again with just a Global or S&P500 index fund. I've wasted so much time and energy trying to pick the best funds or stocks and overall they have not performed as well as if I had just gone for a basic ETF. The thing is there is a massive industry that wants us to buy their funds as if we all swicthed to ETFs they would all be out of a job. Its like a massive secret that ETFs are not only cheap but the best option.

[ALiBix]

My buddies love bragging about the growth they've gotten with specific stocks, but for some mysterious reason, they never want to talk about the value of their whole portfolio...

[samuelwilliams]

I am 50% Index Funds and 50% Individual Stocks. It took 10 years of study and practice to outperform my indexes. I would send most people to indexes because the work and time it takes to outperform the index is not for normal people.

[elvismark]

Is it a good time to buy stocks right now? How long will it take for us to recover? I know everyone claims that equities are now inexpensive. Although there are tactics to be applied in this market, the common person cannot access these strategies. Would I be better off investing my money somewhere else?

[jaclynbriggs]

Hi Rob. I just wanted to say I really like your content. Keep up the great work.

[STAXONDECK]

S&P 500 will probably still beat you in the long run

[briandbeaudin]

Great advice! One of the dilemmas of individual stock picking is the gnawing fear that, over time, you may find that you made a poor choice. During the early 2000 Tech bubble, many of the high flying stocks I held literally became worthless or substantially worth less. That was a very painful lesson. Broad based Index funds would mitigate such a possibility.

[mikefixac]

Really liked this. Thank you Rob. Surely index funds are the way to go. The nice part about Roth is not having to worry about any tax consequences or reporting. So if a stock is bought and sold within a year, no worries about cap gains.

[sleepyhead]

Man I really needed to hear this after listening to all of my friends bragging about "stonks" for the past year. I'm going to stick to the script of total us stock and international stock and DCA. You've earned yourself a new subscriber!

[nickv]

Jack Bogle was right. The key to sucess is to never underperform the index. Low cost index funds guarantee that will not happen.

[lorenzomizushal]

He's right. I've been losing since I've started. Finally gave index stocks a try and I've been winning ever since, not as much but so much better than losing all the time.

[Drotopia]

Hedge funds are now unable to compete with standard indexes at this point 👍

[kathleenstoner.n]

Legends to embrace if you want to get rich investing Bob and Gary Joe Wilde.

[JoseHernandez-pihz]

I completely agree with your messages that an index fund will absolutely outperform any individual stock investor and you made that clear in this video. So sorry Rob .. the title WAS clickbait. But that’s ok because I’m with you on the fact that index fund investing is the way to go for long term retirement investing.