Mutual Funds VS Market Index Funds

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[HugoBergmann-lund]

I admire your dedication to educating your audience. We all strive for financial stability and a better life, and this can be achieved through wise investments, frugal living, and careful budgeting. I'm grateful that I learned the importance of working hard for financial freedom at a young age.

[JordanReam]

I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1, 000, 000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?

[mohammedsajahan]

just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[DennisJack-kmho]

The last mutual fund I invested in I lost almost all of my money, while they were charging hefty commission. Not doing that anymore, but I'm not so versed with the market myself. I know I can profit though-- can't believe S&P 500 is up 25% this year! I wonder what next year holds.

[Abelone-Alvilda]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[NicholasBall]

Investing in mutual funds offers a structured and diversified approach to building wealth, managed by professional fund managers. While there are costs and some limitations, the benefits of diversification, professional management, and ease of access make mutual funds a popular choice for achieving a variety of financial goals.

[nathanaltai]

Are you serious? I don't understand how you dismiss every single academic study since the 30's. Every single expert (who is not a fund manager) agrees that index funds are simply better, including Warren Buffet.

[KimboToob]

Listen to Dave for debt management. For all other investing advice, look elsewhere.

[carlplymale]

I am a big fan of index funds and I don't think Dave should downplay the importance of low fees.

[SamMcinturff]

Except index funds usually have no commission, the lowest fees, and 80% of managed funds underperform the market, even before taking into account the higher average fees. Dave is right in saying that savings rate is the most important factor in saving for retirement, but it provides no benefit to pay a 5.75% commission, and a higher average annual fee to boot. Virtually everyone would be better off with an index fund.

[spaceman]

Follow Dave Ramsey's advice to get out of debt. Follow John Bogle's advice when you have money to invest.

[Yetiman]

This might be the first comment thread in youtube history where everyone is on the same side

[drsusannakemper]

Biased, and avoiding the question because of the bias. Index funds are the best, cheapest, and safest way to invest for non-experts.

[nationalnotes]

Fees are not a matter of liberal/conservative it’s a matter of cutting into your overall portfolio return.

[PotBellyPete]

Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?

[TheMonkWay]

*The fee is actually very important. If you start with a million dollars and get 10% a year. Over 60 years, at 0.04% fee, you'll have 298 million, with a 1% fee, you'll have 176 million, that's a 122 million dollar difference because of that 1% in fees.*

[Duke-]

10-20% of mutual funds typically outperform their respective index in any given year, but nearly 0% outperform consistently for many consecutive years.

[uk]

My godfather told me decades ago, for retirement funds, go with a low expense fee Vanguard index fund, add to it every month, don't ever touch it, forget about it until you get closer to retirement. Still true in 2018.

[bunnandjenn]

I listen to Tony Robbins, and Warren Buffett. Invest in only Index funds. Low fees.

[AdamPolignone]

Simple put your money in an index fund and don't touch it. Over the long term it will out perform most actively managed funds. Plus the fees are minuscule compared to mutual funds.