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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Why all the Vanguard boosters?[/quote]

Because unless you know something the market doesn't, index funds are the way forward. And if you choose index funds, lowest fees are the most important factor in determining returns over the long term. Of all the financial services firms, Vanguard have the lowest cost structure and hence the lowest fees.[/quote]

As I noted above, index funds are very good but can have serious downsides in a down market (you are diversified but not protected) ... if you can find a decent advisory source some actively managed funds can help you do better than index funds with no more risk, and you don't have to become a genius.  I mentioned the one I use, which has done very well as finding alternatives/analogs to the diversification in the index funds, with better return and less risk in many cases.

But if you want to set & forget and understand that index funds can still have some real downside risk, too, they are a worthwhile choice.[/quote]

I disagree completely. There are always downside risks in a down market. The best way to protect yourself is by having an appropriate mix of bonds and stocks - treasuries tend to do well when the stock market falls.

Actively managed funds do not do better than index funds with no more risk. They may do better in the short term, but over the long term their returns will revert to the mean, and as a result of their higher fees you will be worse off.

http://www.forbes.com/sites/rickferri/2013/04/04/index-fund-returns-get-better-with-age/[/quote]

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