The State of CA Makes the Case for Indexing

[pkcrafter]

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

[retiredjg]

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".

[pkcrafter]

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

[EDN]

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.

Eric

[pkcrafter]

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.

Eric

NO, not going there.