Publisher's Synopsis
Simple Low-Cost Investing Beats Wall Street Warren Buffett has proved it, again. You do not need Wall Street 'professionals' to reach your financial goals. In fact, if you use them, you may give up 63% of your potential accumulations because of bad trading, annual expenses, charges, commissions and fees. Buffett made a bet with a hedge fund manager for $1 million 10 years ago. So far Buffett's strategy has earned over 7% a year versus 2.2% for Wall Street's best and brightest. Buffett has advocated a simple low-cost strategy for decades: Buy the stock market index in a fund like Vanguard's 500 Index. Invest in the market returns consistently and you will do better than everyone you know. Instead of $854,000 at $250 a month you end up with $220,000 because of Wall Street costs. Over the long term, your returns would average over 11% per year. DALBAR keeps track of returns and found that the average managed-account equity investor earned just 3.79% a year over 30 years ended 2014. The benchmark returned 11.06%. We buy the stock market index at the low cost of 0.04% and so earn 11% over time. We avoid paying the 'load' or commission, miss-timing trades and hidden charges: purchase, redemption, 12b-1 fees. We don't need an advisor to decide to buy or own this fund. In fact, they take fees whether we receive a benefit or not. And don't be fooled by a 'no-commission' ETF: Expenses are near 1% a year. Costs matter long term. We take Buffett's unbiased (no fees) advice. We do NOT pick stocks or try to time the market. We invest automatically so we can't fail. We start our $1 million account in 1 hour FREE
