Individuals should consult with their own advisors for specific financial and tax advice. Click THIS to Join , enter the contest and post here. In short, investing should be dull and boring. Indexing is boring. John Bogle agreed, and he began building the Vanguard fund family 30 years ago on the world's most boring investment strategy - index funds.
Indexing is boring.
Big mistake to think that. Because there are so many choices among index funds. It wouldn't be frenzied day-trading, of course, just a new version under the guise of frequent portfolio rebalancing. Actively-managed funds often turnover stocks in their portfolio at a rate of 100 to 150 percent a year, which increases shareholders' annual capital gains exposure. Turnover is virtually nil with index funds - stocks are bought and sold only to cover purchases and redemptions.