The State of CA Makes the Case for Indexing

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The State of CA Makes the Case for Indexing

Postby pkcrafter » Sat Feb 09, 2013 1:53 pm

The State of CA Uniform Prudent Investor Act recommends index funds. This article by Scott Simon makes a strong case by clearly laying out the reasons. Well written and well organized.

http://www.indexmutualfunds.com/PrudentInvestorAct.pdf

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Re: The State of CA Makes the Case for Indexing

Postby retiredjg » Sat Feb 09, 2013 2:11 pm

Pretty good summary! The surprising part is that it was published 15 years ago. I didn't read every word, but the excellent organization helps to fine the "good stuff".
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Re: The State of CA Makes the Case for Indexing

Postby pkcrafter » Sat Feb 09, 2013 2:24 pm

jg, I agree, the presentation by Simon is very well done. Of course, all of his arguments still hold, which is one of the beauties of using index funds.


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
pkcrafter
 
Posts: 8196
Joined: Sun Mar 04, 2007 1:19 pm
Location: CA

CALPERS Continues to Miss the Cut

Postby EDN » Sat Feb 09, 2013 2:36 pm

Paul,

I thought you were going to reference the $250B CA State Pension Plan (CALPERS) that has underperformed a simple 80/20 index fund portfolio (like Vanguard Lifestrategy Growth currently) holds over the last decade. :confused

Eric
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Re: CALPERS Continues to Miss the Cut

Postby pkcrafter » Sat Feb 09, 2013 4:59 pm

EDN wrote:Paul,

I thought you were going to reference the $250B CA State Pension Plan (CALPERS) that has underperformed a simple 80/20 index fund portfolio (like Vanguard Lifestrategy Growth currently) holds over the last decade. :confused

Eric

NO, not going there.
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
pkcrafter
 
Posts: 8196
Joined: Sun Mar 04, 2007 1:19 pm
Location: CA


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