Just a quick thought here on the investment business in general – how are there still so many closet indexing funds? When I look at the world of active managers I see funds that mostly just correlated with their benchmark. Some of them might beat that benchmark by a little bit every year or over a sustained period, but there’s no telling whether this is actually skill or luck. But what we know is that most of these investors are paying for 95%+ of the correlation of a specific type of asset class and being charged 1%+ consistently for outperformance that usually doesn’t amount to anything close to that. Back out taxes and you’re almost certainly in the hole in most of these cases.
If you use mutual funds be mindful of the fund’s expenses and tax consequences. Mutual funds are an antiquated product in my opinion that should go the way of the dodo bird. Sadly, the odds are your mutual funds suck and you don’t even know it.