If you’re smart enough to fly aircraft, or at least read FLYING, you may be able to educate yourself well enough to make your own basic investing decisions. My goal with this column is to present a case for a simple, effective investment strategy that you can implement right now to start your money working for you.
High Finances: Flying the Right Fund Can Free You Up
Going with a broad index fund can simplify your investing strategy—and give you more time to spend in your airplane.
Key Takeaways:
- For most investors, attempting to beat the stock market through active stock picking or professional fund managers is ineffective, as most fail to outperform due to high fees and the inherent difficulty.
- A simple, effective investment strategy involves passively investing in broad-based index funds (like total market or S&P 500 funds) that capture the market's long-term average returns.
- When choosing an index fund, prioritize those with extremely low expense ratios (ideally below 0.05 percent) to maximize your investment growth and minimize costs.
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