Quote:
Originally Posted by eastern motors
So you guys prefer just owning the S&P 500? (or Russell 2000)
No, we prefer using index funds to build a balanced portfolio of bonds, international stocks, and domestic stocks. The core of this should be a Total Market Index Fund. I then tilt toward small caps by using a Russell 2000 Index fund.
But getting rid of an S&P 500 index fund to go into actively managed is lolbad. There have literally been hundreds of studies that show managed funds almost always lose out over index funds over the long run. If you want to be more aggressive to amp up your returns, you should start with a TSM index and then add more aggressive index funds to it (for example a small cap index).
Transferring from index to actively managed is almost certainly going to make your returns worse, not better.