The Crushingly Expensive Mistake (The Atlantic)

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3CT_Paddler
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The Crushingly Expensive Mistake (The Atlantic)

Post by 3CT_Paddler »

Here is an article from The Atlantic titled The Crushingly Expensive Mistake Killing Your Retirement... http://www.theatlantic.com/business/arc ... nt/283866/

Nothing earth shattering in the article, but its nice to see the Boglehead gospel spread far and wide...
Think about your 401(k). The first thing you probably look at when you pick your funds is their returns. It's only human nature. Everybody likes to think about their nest eggs growing and growing and growing—especially if they're growing a little bit faster than everybody else's. But, in this case, human nature is costing you hundreds of thousands of dollars.

The sad fact is that returns aren't certain, but fees are.
This is some brutal math. It's 27 percent of your retirement going to Wall Street for nothing. Actually, less than nothing. Remember, about 80 percent of actively managed funds do worse than index funds after you take fees into account. It's a Wall Street handout that you can't afford to make.

Skip the fees, and save your retirement.
Beat The Street
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Re: The Crushingly Expensive Mistake (The Atlantic)

Post by Beat The Street »

With all the different index funds coming to the marketplace these days, people will chase returns in index funds just like active funds and still underperform. The expense ratios are lower but that won't help the behavioral aspect.
“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.” -Taleb
FredCouples
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Fees article

Post by FredCouples »

Mr. Bogle's message is getting out there . . . .finally.

http://www.theatlantic.com/business/arc ... nt/283866/
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Re: The Crushingly Expensive Mistake (The Atlantic)

Post by LadyGeek »

FredCouples wrote:Mr. Bogle's message is getting out there . . . .finally.

http://www.theatlantic.com/business/arc ... nt/283866/
FYI - I merged your thread into this one (posted earlier).
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