Geoff Says: Worth Two Cents?

Today Geoff shares his Two Cents Worth on Investing.

 This show (link below) was on PBS last night. Seems to have good advice – and warnings – about investing and saving for retirement.  We have no stock market or mutual fund investments, but most people do.  I was especially impressed with their evidence that index funds are much better than ordinary mutual funds. Two major reasons. (1)Because they are index funds – investing across the whole market – they don’t have high priced “experts” picking and choosing stocks. So their fees are much lower. (2)Index funds consistently do better than mutual funds.

Another really good piece of advice/information was that you should only have a broker who agrees, in writing, to act as your fiduciary agent. That requires him, by law, to put your interests first. Brokers who are not fiduciary agents are free to make recommendations that may well be more to their own interests than yours. It was almost funny watching some of the bankers and brokers trying to dodge this obvious question when the Frontline interviewer asked them.

http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/