Who Invests 100% in Passive Index Funds/ETFs

CdnAppraiser · Post by **CdnAppraiser** » Thu Jan 16, 2014 7:36 am

Hey everyone,

I find most people are affraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs?

Cheers

ot1138 · Post by **ot1138** » Thu Jan 16, 2014 7:39 am

One right here.

leonidas · Post by **leonidas** » Thu Jan 16, 2014 7:41 am

I am about 80% invested passively. I still own individual stocks, gold/silver, the permanent portfolio fund and a NJ Tax Free Bond fund that is active. Since the bulk of all new investments are going into index funds that 80% will slowly crawl upwards.

livesoft · Post by **livesoft** » Thu Jan 16, 2014 7:44 am

I think some folks will be mistaken about it because many commonly used Vanguard funds are not passive index funds. For example, Short-term Investment Grade Bond fund is not. Neither are the Treasury Inflation-Protected bond funds. Correction: The intermediate-term TIPS fund is not an index fund while the short-term one is an index fund.

Also many folks cannot go 100% index because of limitations in their employer-sponsored retirement plans.

Our portfolio is 93.7% index funds. That number is conveniently provided by the Vanguard Portfolio Watch tool. And Whoops! It is wrong since Portfolio Watch excludes some things.

Riceman · Post by **Riceman** » Thu Jan 16, 2014 7:48 am

Sometime in college, I took control of Columbia mutual funds left to me by my grandmother. Immediately transferred 100% to vanguard. Have been 100% index funds ever since (about 10 years), with my money split between vanguard equity index funds and TSP C/S/I funds. I did actively move money between different index funds, too often initially, and probably cost myself some returns by doing so, but now I've learned that lesson too.

TheTimeLord · Post by **TheTimeLord** » Thu Jan 16, 2014 7:58 am

Since I assume you mean equity investments excluding things like I Bonds and Cash, I am probably now 85%-90% passive index funds.

matjen · Post by **matjen** » Thu Jan 16, 2014 8:07 am

I am 100% passive (I include DFA funds in that definition) on the equity side. Many bond funds aren't really passive. I own BMBIX in the Muni space for instance which wouldn't be passive.

dkturner · Post by **dkturner** » Thu Jan 16, 2014 8:18 am

I index all of the equities in my taxable account. Don't index the fixed income because Vanguard doesn't offer tax-exempt bond index funds. Taxable account is overwhelmingly invested in equities.

My tax deferred account is all actively managed. Much more flexibility when I can ignore the tax consequences of my purchases, sales and holdings. Tax deferred account is only about 35% equity.

nisiprius · Post by **nisiprius** » Thu Jan 16, 2014 8:22 am

I'm going to say "yes, I am" but that is not quite true. What is strictly true is that I do not use any "tilts," "slice-and-dice," "factor-based," "multi-asset" strategies. We are 100% active-management-free, 100% tilt-free, 100% low-cost. However, yeah, I plead guilty to "fear of simplicity."

Also, this is just a statement of our situation, please do not take it as any kind of recommendation or model.

1) All of the mutual funds we hold are "essentially" broad-based passive index funds.

Major holdings: Total Stock, Total Bond, Total International. Small holdings: Short-Term Bond Index, Inflation-Protected Securities, Short-Term Inflation Protected Security Index, Prime Money Market.

Strictly speaking Inflation-Protected Securities is not an index fund but it follows the index so closely you'd never know it. Strictly speaking Prime Money Market isn't an index fund.

2) Mutual funds represent about 2/3 of our total portfolio. The other 1/3 is composed of individual TIPS and series I savings bonds.

3) The series I savings bonds represent a unique kind of asset that is unobtainable in the form of a mutual fund.

4) The individual TIPS honestly represent "legacy complexity." But also, very likely, my continuing to hold them reflects my own "fear of simplicity."

When I started to buy TIPS, TIPS mutual funds did not exist, and by the time they did exist I a) had gotten into the habit of buying individual TIPS, and b) had mentally bought them with the idea of holding to maturity and preferred to stick to the plan.

This may represent "fear of simplicity" on my part. I don't think our situation would change all that materially if I simply sold them all and exchanged them for a TIPS fund, but I'm convinced it would change, and I just prefer to stick to the plan. At one point I seriously considered the idea of a two-fund allocation, to intermediate and long-term TIPS index funds, corresponding roughly to the total duration of the collection, and shifting gradually to simulate the reduction in duration with age that happens in a portfolio of TIPS that mature and are not replaced. I convinced myself that this was NOT AT ALL equivalent, even roughly, to holding an actual TIPS portfolio.

The TIPS collection is not a well-built ladder and I do not have a spreadsheet pairing specific future expenses with specific maturing TIPS. But they are sorta-kinda arranged to mature in a more or less spread-out way through retirement. My plan is that proceeds from maturing TIPS will be invested in VIPSX and that steady withdrawals will be taken from VIPSX. Ask me in fifteen years whether I've actually done that.

Where things stand at the moment is that I cannot convince myself that exchanging the TIPS portfolio for a TIPS fund would be an improvement, and I cannot see any harm in just leaving things as they are, so I am leaving well enough alone.

I also think I could throw in the towel and exchange the TIPS for a fund at any time, and that generally the ups and downs of the portfolio's market value are similar enough to the general ups and downs of a TIPS fund that there would not be any large wins or losses involved in the choice of the exact moment to do it.

5) My unwillingness to just chuck it all in and go with Target Retirement Income definitely reflects "fear of simplicity."

6) In considering our situation as a whole, it should be noted that we have an SPIAs. If you estimate its present value and add that to the grand total, then our retirement assets would be about 1/2 passive broad-market mutual funds, 1/4 individual TIPS and series I savings bonds, 1/4 SPIA.

RNJ · Post by **RNJ** » Thu Jan 16, 2014 8:27 am

100% on the equity side, though not all of that is cap-weighted. All Vanguard on the bond side (treasuries, TIPS, municipals), but none of that is indexed (perhaps, on the bond side anyway, a distinction without a difference?).

dsmil · Post by **dsmil** » Thu Jan 16, 2014 8:57 am

I'm 100% in Vanguard ETF's and the only thing I see changing in the future is moving to index funds

dbr · Post by **dbr** » Thu Jan 16, 2014 9:01 am

CdnAppraiser wrote:Hey everyone,

I find most people are affraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs?

Cheers

As pointed out by Nisi and Livesoft, it isn't that simple.

With that caveat, I would answer yes to the question you probably mean but no to the question you asked.

Bacchus01 · Post by **Bacchus01** » Thu Jan 16, 2014 9:12 am

About 99% for me.

Justinbc6 · Post by **Justinbc6** » Thu Jan 16, 2014 9:18 am

100% index here. when I first began (5 months ago) I didn't think this would work out b/c I really wanted to fiddle with the numbers A LOT! however, ive remained disciplined and rarely check balances.

Garco · Post by **Garco** » Thu Jan 16, 2014 9:25 am

Just to break the string, I'll report 35% passive in equities in my principal tax-advantaged retirement fund. But I have a fairly simple portfolio with 4 mutual funds: 2 U.S. LC's, 1 LC international, and 1 MC-SC U.S. I tilt toward MC-SC (relative to the 75-25 ratio in TSM).

Outside of equities, I'm all "active," i.e., TIAA Real Estate (TREA), some PIMCO FI funds, and TIAA Traditional (really a stable value fund).

I'm not a trader, and while I do rebalance a couple times a year, I let things be and stick to my AA (~52% equities). My taxable fund is a different matter, not that I'm an active trader but that the investments are spread across quite a few different instruments including CD's, munibonds, ETFs, and a couple of individual stocks.

mhc · Post by **mhc** » Thu Jan 16, 2014 9:54 am

100% Passive Index

sscritic · Post by **sscritic** » Thu Jan 16, 2014 10:03 am

TIAA Traditional is not an index fund
CREF Stock is not an index fund
CREF Bond Market is not an index fund
CREF Inflation-Linked Bond is not an index fund
TIAA Real Estate Account is not an index fund
Vanguard California Intermediate-Term Tax-Exempt is not an index fund
Vanguard Intermediate-Term Investment-Grade is not an index fund.

What am I missing?

Oh, right.

Vanguard Prime Money Market is not an index fund.

NightOwl · Post by **NightOwl** » Thu Jan 16, 2014 10:06 am

I am 100% passive index/ETF in the accumulation phase, but I will move without hesitation to "actively managed" bond funds (TIPS, munis) when the time is right.

Keep in mind that posts about complex portfolios are more frequent than posts about simple portfolios because, well, complex portfolios are more complex and people need more help thinking about them and rebalancing them. My assumption is that the submerged 90% of the Boglehead iceberg is invested simply and passively and therefore doesn't have many ongoing questions or concerns.

Edited to add: just read sscritic's post -- good thing I don't have any money in PMM right now!

NightOwl

ObliviousInvestor · Post by **ObliviousInvestor** » Thu Jan 16, 2014 10:09 am

100% passive here.

Clark & Addison · Post by **Clark & Addison** » Thu Jan 16, 2014 10:10 am

All passive here.

ofcmetz · Post by **ofcmetz** » Thu Jan 16, 2014 10:20 am

Equity is all index funds, but not market weight as I'm 50/50 large vs small caps.

Fixed income has TIAA Traditional, PIMCO Total Return, and a stable value fund included. So not passive there at all. (Although there is some of the Vanguard Intermediate Bond Index Fund).

Also have some in TIAA Real Estate which is not index at all. (Thanks for the reminder sscritic)

bottomfisher · Post by **bottomfisher** » Thu Jan 16, 2014 10:24 am

I spent the latter half of last year simplifying portfolio holdings. Was briefly down to 100% passive in Simple IRA, Roth IRA, 457 accounts. Recently reopened non-tax deferred account in Vg Tax Managed Balanced. Not truly passive but in essence the stock component is - "The stock component’s unique index-oriented approach attempts to track its benchmark."

happymob · Post by **happymob** » Thu Jan 16, 2014 10:25 am

The last of our Wellington is gone, so 100% of our equities is in passive index funds. We do own I-Bonds and Treasuries directly, so we're not 100% passive in our bond allocation.

staythecourse · Post by **staythecourse** » Thu Jan 16, 2014 10:36 am

I am probably 90%+. Vanguard TBM and TIPS funds I hold in my wife's 401k and a 529 plan respectively. Am not sure how passive they are. Sure they are more passively active then others of their kind from other mutual fund companies.

Now the difference is, unfortunately, I am not 90%+ in LOW COST passive investing. Thanks to my lousy 401k super duper wrap fees

. So I only get some of the advantages of indexing in those accounts.

Good luck.

YDNAL · Post by **YDNAL** » Thu Jan 16, 2014 11:21 am

CdnAppraiser wrote:Hey everyone,

I find most people are affraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs? (my emphasis)

Cheers

Lets see.... what is "broad based" ?

1. Does FTSE Small ex US qualify ? ( https://personal.vanguard.com/us/funds/ ... IntExt=INT )
2. How about IT Investment Grade Bonds <-- not an "index fund" ? ( https://personal.vanguard.com/us/funds/ ... IntExt=INT )

How would owning these funds translate to being "afraid of simple portfolio strategies" thus "over complicate things" ?

michaelsieg · Post by **michaelsieg** » Thu Jan 16, 2014 11:24 am

I just looked at this and realized that I don't look that great.
The problem I have, is the bond portion of my portfolio, I have about 55% in bonds. I am not sure how to classify my VG bond holdings. I am holding a significant portion of the VG short- and intermediate treasury bond funds/ETFs and also own a significant portion the VG short term corporate bond ETF - I guess technically I can't call them index funds as they are actively managed….so if there were statistics, I would not look that good.
On the equity side I am doing much better with "pure" indexing - essentially all new money goes into index products.
Exeptions are the micro caps, where I use the Bridgeway fund BRISX (has the word index in the name, but has a lot of active management) and I still hold a blend/value fund that I had for a long-time with significant capital gains. So for tax reasons I am waiting to liquidate the balanced blend fund at a later point in my life and not now in my accumulation phase. Also, after reading Swenson's book about portfolio management, I decided to put some of my EM allocation (less efficient markets there according to Swenson) into the VG EM select fund - time will tell if they are able to overcome the higher fees….

CdnAppraiser · Post by **CdnAppraiser** » Thu Jan 16, 2014 11:41 am

YDNAL wrote:
CdnAppraiser wrote:Hey everyone,

I find most people are affraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs? (my emphasis)

Cheers
Lets see.... what is "broad based" ?
1. Does FTSE Small ex US qualify ? ( https://personal.vanguard.com/us/funds/ ... IntExt=INT )
2. How about IT Investment Grade Bonds <-- not an "index fund" ? ( https://personal.vanguard.com/us/funds/ ... IntExt=INT )
How would owning these funds translate to being "afraid of simple portfolio strategies" thus "over complicate things" ?

The majority of investors in this world make investing complicated by listening to Mr. Market, friends, family, reading a book or listening to an Advisor who isn't a fiduciary of their money. I was just curious as to how many Bogleheads invested simply and passively.

I am Cdn so we only have an RRSP (Tax Shelter) and a TFSA (After tax dollars to be invested without Cap Gains, etc.)

Here are some simple portfolios:

#1
Canadian equity 20% TD Canadian Index – e (TDB900)
US equity 20% TD US Index – e (TDB902)
International equity 20% TD International Index – e (TDB911)
Canadian bonds 40% TD Canadian Bond Index – e (TDB909)

#2
Canadian equity 20% Vanguard FTSE Canadian All Cap (VCN)
US equity 20% Vanguard Total Stock Market (VTI)
International equity 20% Vanguard Total International Stock (VXUS)
Government bonds 20% BMO Mid Federal Bond (ZFM)
Corporate bonds 20% Vanguard Cdn Short-Term Corporate Bond (VSC)

#3 (Little more work)
Canadian equity 12% PowerShares FTSE RAFI Cdn Fundamental (PXC)
Canadian small cap 6% iShares S&P/TSX SmallCap (XCS)
US equity 12% Vanguard Total Stock Market (VTI)
US small-cap value 6% Vanguard Small-Cap Value (VBR)
International equity 6% iShares MSCI EAFE Value (EFV)
International small cap 6% iShares MSCI EAFE Small Cap (SCZ)
Emerging markets equity 6% Vanguard FTSE Emerging Markets (VWO)
Global real estate 6% SPDR Dow Jones Global Real Estate (RWO)
Government bonds 20% BMO Mid Federal Bond (ZFM)
Corporate bonds 20% Vanguard Cdn Short-Term Corporate Bond (VSC)

Taylor Larimore · Post by **Taylor Larimore** » Thu Jan 16, 2014 11:48 am

CdnAppraiser wrote:Hey everyone,

I find most people are afraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs?

Cheers

CdnAppraiser:

I am "stuck" with large capital-gains in several non-indexed funds in my taxable account. If I were to exchange now to more desirable tax-efficient broad-based index funds, a large capital-gain tax would be triggered and I would have that much less to reinvest. A mixed blessing: My taxable funds will pass tax-free to heirs.

Lesson learned: It is very important in a taxable account to start-out using low-cost, tax-efficient, index funds that can be held 'forever.'

Best wishes.
Taylor

manwithnoname · Post by **manwithnoname** » Thu Jan 16, 2014 11:51 am

livesoft wrote:I think some folks will be mistaken about it because many commonly used Vanguard funds are not passive index funds. For example, Short-term Investment Grade Bond fund is not. Neither are the Treasury Inflation-Protected bnod funds.

Also many folks cannot go 100% index because of limitations in their employer-sponsored retirement plans.

Our portfolio is 93.7% index funds. That number is conveniently provided by the Vanguard Portfolio Watch tool. And Whoops! It is wrong since Portfolio Watch excludes some things.

Almost 50% of VG investments are in actively managed funds.

manwithnoname · Post by **manwithnoname** » Thu Jan 16, 2014 12:05 pm

Taylor Larimore wrote:
CdnAppraiser wrote:Hey everyone,

I find most people are afraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs?

Cheers
CdnAppraiser:

I am "stuck" with large capital-gains in several non-indexed funds. These funds are in a taxable account. If I were to exchange now to more desirable tax-efficient broad-based index funds, a large capital-gain tax would be triggered and I would have that much less to reinvest.

Lesson learned: It is very important in a taxable account to start-out using low-cost, tax-efficient, index funds that can be held 'forever.'

Best wishes.
Taylor

Why is having a large cap gain a restriction on your investment opportunities? Buying low and selling high is the best result any investor can attain. And if you are in the bottom 99% of taxpayers the most you will pay as cap gain is 15% which is a small toll charge. Of course, the cap gains will be eliminated if the funds are held until death. If you give appreciated securities to a charity during your life there will be no cap gains tax.

You can invest in low cost actively managed VG funds which can be passed to heirs with a stepped up basis. And if you are in the 15% bracket there will be 0 fed tax on cap gains and qualified dividends.

kenyan · Post by **kenyan** » Thu Jan 16, 2014 12:21 pm

Was going to correct Livesoft on the Short-term TIPS fund, but he beat me to it

. Anyhow, I'm mostly in index funds, but do hold the Vanguard TIPS fund, Vanguard International Explorer, and Vanguard International Value funds, as well as a TRP active domestic value fund in another employer account due to availability. We also have an actively managed Oppenheimer fund in my wife's SIMPLE IRA, but that is only a place to hold funds in between transfers to a Vanguard index. I consider the first to be basically a passive index fund, though it is not, strictly speaking. Overall, I'd call our allocation 75% passive/25% active. I'd be happy being 100% passive, but we'd have to deviate from our desired AA to make that happen, and I'd rather have low-cost active slices to fulfill our IPS.

Wooderson · Post by **Wooderson** » Thu Jan 16, 2014 12:37 pm

95.7% Index Funds, the remainder is stock in a large regulated electric utility that I have owned since birth. My wife and I are lucky to have some good selections in our 401k plans, the lowest ER being 0.01% and the highest 0.27%.

placeholder · Post by **placeholder** » Thu Jan 16, 2014 1:08 pm

My stable value (approx 20% of total) is not indexed but otherwise my slicer portfolio is all index funds or ETFs.

BrandonBogle · Post by **BrandonBogle** » Thu Jan 16, 2014 1:15 pm

dkturner wrote: Don't index the fixed income because Vanguard doesn't offer tax-exempt bond index funds.

Same here. I have some individual stock equity holdings from my pre-Boglehead days in taxable that have huge capital gains, so they will remain. They are all large-cap and part of the S&P 500, so I could them as part of my S&P 500 allocation (my 401k has S&P 500 index and Russel 2000 index, but no total market - so I approximate TSM using both INDEX funds). All my new money and all money other than those individual holdings (in equity) are index funds.

On the fixed income side, it's not as simple. I have some PenFed 3% CDs, Vanguard's Stable Value/Retirement Trust fund, and Vanguard's long-term tax-exempt fund (in taxable) on top of my TBM holdings.

Ged · Post by **Ged** » Thu Jan 16, 2014 1:20 pm

Our equity investments are 90% passive index. It would be 100% except we have a 457b that doesn't offer any passive index funds.

When my wife retires that will change.

Bracket · Post by **Bracket** » Thu Jan 16, 2014 2:39 pm

I am all index funds except:

VG intermediate term tax exempt bond fund
Fidelity Intermediate Bond Fund (there is NO bond index fund in my 401k so I use this)
DFA TIPS fund (DIPSX) (another 401k offering)

That makes me about 95% index funds. If we say DIPSX is an "index" then I'm 99% index funds.

Sriracha · Post by **Sriracha** » Thu Jan 16, 2014 3:40 pm

Yep, 100% index funds within retirement portfolio (Fidelity Spartan in 401k; Vanguard in IRAs & taxable). I use VG SCV for what is now just a minor tilt; I'll leave it to the reader to decide if that qualifies as "broad-based" and/or "passive." It's "broad-based" and "passive" enough for me.

I'm old-fashioned enough to still carry a separate emergency fund, and I consider it to be distinct from the long-term retirement portfolio. The EF is not in an index fund.

JoMoney · Post by **JoMoney** » Thu Jan 16, 2014 4:05 pm

Almost entirely in various S&P500 index (funds/CITs) in my accounts, I have <5% in VT in a brokerage account.
I have cash in the bank, and a short-term bond index fund I use for other savings but don't consider that part of my investment portfolio.

BrandonBogle · Post by **BrandonBogle** » Thu Jan 16, 2014 4:31 pm

Sriracha wrote:I'm old-fashioned enough to still carry a separate emergency fund, and I consider it to be distinct from the long-term retirement portfolio. The EF is not in an index fund.

I think most of us would have EFs, I at least do. That said, my EF is in cash (1.99% savings), though even a CD with a decent EWP would be good.

Swampy · Post by **Swampy** » Thu Jan 16, 2014 4:43 pm

I'm 65% in index funds and ETF's, 13% other and 22% cash equivalents. Working my way to 85-90% index and 10-15% cash.

Random Musings · Post by **Random Musings** » Thu Jan 16, 2014 4:44 pm

It appears that the majority of posters (myself included) are investing in a passive manner as best they can with a few minor twists (such as holding individual TIPS, I-Bonds and not "pure" 100% index/passive bond funds - which I do as well). Certain investors have constraints, including available choices in 401K plans. Others, including me, continue to "roll the dice" by being a little active (Primecap and Healthcare are my two long-long-term vices).

Big picture, being 100% is not the name of the game. Developing and sticking with a rational written investment plan is far more critical.

RM

siamond · Post by **siamond** » Thu Jan 16, 2014 6:00 pm

Essentially passive (or as close to passive as I can, giving funds availability on my various investment vehicles).

Well, except for a stupid bet from a few years ago that a couple of stocks battered by the 2008 crisis will rise & shine... Will hold a while longer on those while I'm in a high-tax bracket (since they partly recovered)...

bpp · Post by **bpp** » Thu Jan 16, 2014 6:02 pm

I invest 100% passively, using index funds, (Japanese) savings bonds and passively managed individual stocks.

nisiprius · Post by **nisiprius** » Thu Jan 16, 2014 6:04 pm

sscritic wrote:TIAA Traditional is not an index fund
CREF Stock is not an index fund
CREF Bond Market is not an index fund
CREF Inflation-Linked Bond is not an index fund
TIAA Real Estate Account is not an index fund
Vanguard California Intermediate-Term Tax-Exempt is not an index fund
Vanguard Intermediate-Term Investment-Grade is not an index fund.

What am I missing?

Oh, right.

Vanguard Prime Money Market is not an index fund.

I love it!

Tyrobi · Post by **Tyrobi** » Thu Jan 16, 2014 7:31 pm

100% in passive index funds here. (401k, Roth, Spousal IRA, HSA)

skylar · Post by **skylar** » Thu Jan 16, 2014 7:36 pm

I use entirely passive investments. It's a combination of Vanguard, DFA, a private-label S&P 500 fund in my 457 plan, and a private-label total bond index fund in my wife's 401k. I do have some I and EE bonds, but I suppose those are about as passive as you can get.

investor1 · Post by **investor1** » Thu Jan 16, 2014 7:40 pm

Other than the savings bonds my grandparents gave me for my birthdays as a child, count me in!

flybynite · Post by **flybynite** » Thu Jan 16, 2014 9:03 pm

82% passive
18% active - due to only decent International (HAINX) and Bond (Pimco) option available in 401k's

givewell · Post by **givewell** » Thu Jan 16, 2014 9:25 pm

All Equities are passive, half equities in Total Stock Market, half in Total International Stock.

Have LOTS in Vanguard Tips Fund, not the short term, and that is NOT and Index. My 403(b) does not allow for Vanguard Short-term Tips, but I prefer the old fund anyway. Also LOTs in Total Bond Market, which IS index.

Have pretty much in TIAA Real Estate Account, LESS stock-like than Reit Index, better diversifier for stocks, and good diversifier for bonds, too.

But, I have Still Far More in combination of TSM, TBM and Total International.

MOstly Index, but don't steer clear of sensible opportunites elsewhere, as with Tips and non-stock-like exposure to Commercial Real Estate.

Result: More Diversified Large Portfolio than if only Indexed.

Peter

Jaxfann · Post by **Jaxfann** » Thu Jan 16, 2014 9:41 pm

After having messed around for far too many years with 3 different money managers (paying them 1 to 1.5% to beat the averages) and enjoyed lousy returns - I recently, finally "saw the light" and followed the advice of an experienced, sage fee based advisor that he gave me 6 years ago and placed all my funds in VSCGX. It has been less than 6 months but I am very happy I did this and am convinced that at my stage of life I have made the right decision.

Why did I not realize that a 1% fee is not 1% but 14% of expected returns - duh!!!