Favorite Types of Retirement Investments
S&P 500 Index Funds - FXAIX and VOO or VTI
Reliable Bond Funds - FXNAX and VBTLX or BND
Why do I like these? They either mirror the market or are solid and stable and produce good dividends and have low expense ratios. Expense ratios matter - for example, you can find fidelity bond funds (FTBFX) that perform a little better than FXNAX, but the expense ratio eats up the "little better". FTBFX does have historically higher yields, as in ~0.7%, but the cost is ~15x more compared to FXNAX. So, I choose the lower cost because you keep more of the returns and FXNAX is historically more consistent and has higher risks to achieve the slightly higher yield.
Professional Managers & Market Performance
Professionals can be helpful, but be cautious about what you pay for. Studies show that 92% of professional money managers do not beat the S&P 500 long‑term. Paying a 1% fee on a $1,000,000 portfolio means spending $10,000 per year for a service that only outperforms the market 8% of the time.
To break even, an actively managed fund must outperform the market by at least 1.1% before you see a positive return on your investment.
Popular Financial Voices
Several well-known financial educators offer accessible guidance:
Video Resources
For visual learners, Streamline Financial offers a highly approachable YouTube channel with practical investing insights.