Why Not Invest In S&P 500?

Dave says that Paul can own several mutual funds that beat the S&P whether it's an up-market or a down-market.

Toggle Hide Transcript

QUESTION: Paul asks why Dave suggests diversifying over four types of mutual funds instead of the S&P 500.

ANSWER: I recommend mutual funds because they always beat the S&P.  You can own several funds that beat the S&P whether in an up-market or a down-market.  It’s alright to own some SNP, but none of your retirement savings should be in that.  If you do a little bit of looking you can find tax-protected Roth IRAs and 401-Ks that give much better returns than the S&P.  

For example, take a mutual fund with a 25-year track record.  Over the course of those 25 years if you can see that the mutual fund almost always beats the S&P, then that mutual fund contains stocks that are winning more than the overall market is winning.

How to JUMP-START 2017

Give 2017 a Jump Start!

Get our new 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money this year.

How to BEAT DEBT in 2017

Big Change Starts Small

The best way to get out of debt and take control of your money is to make a plan! Financial Peace University is that plan!

Take the First Step

Thank You!

Your 8-Day Jump Start is on its way to !