Billionaire investor Warren Buffett is known for his business savvy, his money making prowess, and his investing wisdom. But there's one piece of advice he has echoed that he feels has too often fallen upon deaf ears. "Invest in Index Funds" is a staple piece of Buffett investment advice. As a matter of fact, he claims that the nations's elite have wasted an estimated "$100 billion" over the past 10 years by not heeding his advice. So what exactly are index funds? Should you be investing in them? Let us explore.
Back in 1974 Jack Bogle would found the Vanguard Group. Bogle, with the Vanguard Group would change investing forever with the Index Fund. A Princeton graduate, Bogle's senior thesis " The Economic Role of the Investment Company" laid the foundation for the creation of the index fund.
Started on December 31. 1975, Bogle's initial index fund was met with widespread ridicule and derision. It was even labeled as "un-American" and viewed as "Bogle's Folly". As of today the Vanguard 500 index Fund - which started with a meager $11 million investment - is worth over $310 billion, with a "B".
An index fund passively tracks a market index like the Nasdaq or S&P 500. This allows the average Joe to be able to invest in the market with way lower fees than your actively managed funds.
Bogle's research indicated, and his results proved that passively managed index funds yield greater returns than actively managed funds, especially when factoring in what at times can be exorbitant management fees. Nobel Prize winning economist Paul Samuelson stated that the index fund is in the same breadth as "the invention of the wheel, the alphabet, Gutenberg printing, and wine and cheese."
Index funds exist as mutual funds and ETFs and follow preset rules to maintain tax efficiency and low cost. Currently index funds make up for over 20% of all equity funds in the U.S.
Buffett jokes that the desire the mega wealthy have for exclusivity and having something better than the general population has actually cost them billions in the process. Meanwhile all of his friends of more modest means have seen exceptional results investing in passive index funds.
As always, do your due diligence, know your risk, and make sure your having fun. Get out there, get investing, and as always, may the force be with you.
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.