Critics of index funds (see link) claim that buying an index puts too much money in overvalued stocks and not enough in undervalued stocks. If that's true, why do so many active managers underperform? The answer is they don't know which stocks are overvalued and which are.

Why is it that active management critics of index investing who write papers that point to a recent increase in correlations of stocks returns in the S&P 500 by cap weight never use an equal weight total US stock market index as a proxy?

RT @bogleheads: Get your tickets for the 2025 conference!. 👇.

RT @bogleheads: The latest Bogleheads on Investing podcast features Rick Ferri (@Rick_Ferri) interviewing Phil Demuth (@PhilDeMuth) on his….

This is very sad. Warnings of flooding in Central Texas started two days before the flood hit. Mayors and county officials in cities and towns were informed the day before but didn’t act.

RT @CPAPlanner: 1/. 🚨Breaking News🚨. The One Big Beautiful Bill (OBBB) Act has just been passed by the House, and is now on its way to the….

I get many questions about Roth conversations. Many people have been programmed to believe they are a given. That’s not true. There’s a lot to consider. One factor often overlooked is the tax bracket of the people or entity that will inherit your assets. If their tax bracket is.

Simple investing in the public markets is the best approach. Complexity is costly—both in fees and taxes—and the learning curve for heirs who must handle your estate if you become disabled or pass away can be overwhelming. In despair, those heirs often turn to the high-fee.

RT @Rick_Ferri: @tracknumber06 Charging an AUM fee for management and advice simply does not align with the work advisers do for most of th….

I've never met a 1% AUM adviser who shares my view on separating advice fees from asset management fees. Why not? Because their 1% AUM fee does not align well with the amount of dollars they charge clients for these two services, and they're afraid of losing revenue. To say, "The.

Should a single person take Social Security at 62 or wait until 67? . There’s a 30% discount at 62, but you get $ for five years. Breakeven is 80. The answer may depend on sex. A 62 yo male has <55% chance of living past 80, while a 62 yo female has >67% chance. Food for thought.

Vanguard Intermediate-term Corporate Bond ETF (VCIT) holds 2,213 individual investment-grade corporate bonds. That's plenty of diversification. The YTM is 5.2%. Contrast this with the Vanguard Intermediate-Term Treasury ETF (VGIT), which has a 4.0 YTM. IMO, an extra 1.2% yield.

a tax-deferred retirement account, you're turning interest that's state-free into income that's taxed. So, why not use corporate bonds in those accounts and get higher income since 1) the accounts are long-term, and 2) you're going to pay state income tax on distributions.

Some noted advisers suggest taking your risk with equity and buying only Treasuries on the fixed income side. I don't see it that way. An allocation to corporate bonds makes sense, especially in pretax retirement accounts for investors in states that tax distributions from those.