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A couple in their 30s who hit a seven-figure net worth primarily by investing in Vanguard index funds explain why they shifted to ETFs in 2024


Published on 2024-12-11 22:41:09 - Business Insider
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  • "Long term, I would say it's probably a six-figure move, which isn't that big over a 30- to 40-year period. But, it's like, why wouldn't you take it?"

The article from Business Insider discusses how a millionaire couple, Brian and Bob, shifted their investment strategy from individual stocks to index funds and ETFs. Initially, they invested in single stocks, but after experiencing significant losses, particularly during the dot-com bubble, they decided to diversify their portfolio. They moved towards index funds and ETFs for their lower costs, diversification benefits, and passive management approach. Brian and Bob highlight that this shift not only reduced their stress but also improved their investment returns over time. They now advocate for a strategy that involves a mix of broad market index funds, sector-specific ETFs, and a small allocation to individual stocks for potential high returns. Their experience underscores the benefits of index funds in providing stability and consistent growth, aligning with the broader trend of investors moving away from stock-picking to more passive investment vehicles.

Read the Full Business Insider Article at:
[ https://www.businessinsider.com/index-funds-etfs-compared-millionaire-couple-explain-investing-portfolio-shift-2024-12 ]