Is it a good idea to buy index funds for a retirement plan?
In the “You Ask, We Answer” section of Bloomberg, Craig Toberman, Founder of fee-only financial planning firm Toberman Wealth, addresses this question.
35 year old Eric of Atlanta writes in to ask if buying index funds for retirement are a “good plan” for a passive investor or if there are additional, better options available?
“Low-cost index funds are an excellent starting point, but only one piece of a broader puzzle” Craig says, and argues that most “passive” decision makers are still making active decisions.
He goes on to list the three most important active decisions that all investors must make, starting with “overall percentage allocation to equities versus fixed income”.
Have your own questions about investments and retirement? Read more about Toberman Wealth’s Retirement Planning Services.
Craig Toberman is a Partner at Toberman Becker Wealth – a fee-only, fiduciary financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.