Quote:
Originally Posted by lukeh
Okay, 5 years isn't enough...I can see that. What if I gave you the symbols of funds that beat the S & P over the past 20 years, 40 years, 60 years or even 80 years (and I can)? Then why would you take the index over those managed funds?
I get the entire fee thing but we are talking rates of return after fees. If over 40 years managed fund XYZ after fees has beat the index why does it make more sense to invest new money in the index?
Maybe I'm not seeing it but if for 30 years car A has been going around the track faster than car B why would I bet money on car B? It seems like it would be a mistake to bet on the car that has a worse historical track record.
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If you have a 20, or 40, or 60 year horizon it's not a bad bet to chose a fund that has done well over that time period for some of your portfolio. I'm going to retire in 5 years and even I have still have a small amount left in an aggressive managed fund (it won't be there for long). I didn't see where the OP has that long to wait.