Chat with my dad about index funds changed my whole approach

My dad told me last week he's been putting 15% of his paycheck into a single index fund for 20 years and never touched it. Said he just ignored the ups and downs and let it ride. Made me wonder if I'm overthinking my own investing strategy with all these different funds I keep swapping.

2 comments

2 Comments

stellanelson20h agoMost Upvoted

I read a study a few years ago that said something like 80% of active fund managers don't beat the market over a 10 year period. Your dad's approach sounds boring but it's historically the smart play. People jump in and out based on headlines and end up buying high, selling low. If he just left it alone in something like VTSAX or an S&P 500 index, the math works out pretty well over two decades.

taylorellis16h agoMost Upvoted

People jump in and out based on headlines" - yep, that's basically my brother-in-law's entire investment strategy. He saw a meme stock spike once and now he thinks he's Warren Buffett. My dad just bought an S&P index fund in 2002 and literally forgot about it for 20 years. When he finally checked, it had like tripled. Boring but effective, I guess. Meanwhile I'm over here stressing about quarterly reports like it's my job.