{"id":5720,"date":"2010-03-02T06:00:21","date_gmt":"2010-03-02T12:00:21","guid":{"rendered":"https:\/\/blogs2.davenportlibrary.com\/reference\/?p=5720"},"modified":"2010-02-23T14:36:11","modified_gmt":"2010-02-23T20:36:11","slug":"frugal-librarian-21-you-power-broker","status":"publish","type":"post","link":"https:\/\/blogs.davenportlibrary.com\/reference\/frugal-librarian-21-you-power-broker\/","title":{"rendered":"Frugal Librarian #21: YOU: Power broker"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/blogs.davenportlibrary.com\/reference\/wp-content\/uploads\/2008\/12\/frugallibrarian.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-1897\" src=\"https:\/\/i0.wp.com\/blogs.davenportlibrary.com\/reference\/wp-content\/uploads\/2008\/12\/frugallibrarian-223x300.jpg?resize=126%2C169&#038;ssl=1\" alt=\"\" width=\"126\" height=\"169\" \/><\/a>Another financial tip the new book, <em><strong><a href=\"http:\/\/search.prairiecat.info\/?itemid=|library\/marc\/PALS-unicorn|2231600\" target=\"_blank\">New Frugality<\/a><\/strong><\/em>.\u00a0\u00a0 You\u2019re smarter than a wall-street money manager.<\/p>\n<p>Index funds duplicate the performance of a particular stock market index.\u00a0 The most famous equity index fund is the S&amp;P 500.\u00a0 It is made up of stocks of the 500 largest publicly traded U.S. companies.\u00a0 They\u2019re on that list because they are the 500 BEST COMPANIES!<\/p>\n<p style=\"padding-left: 30px;\">\u201cIndexing is commonly referred to as passive investing.\u00a0 No professional money manager is trying to beat the market, rapidly buying and selling stocks. Yet index funds routinely outperform most actively managed funds.\u00a0 Why?\u00a0 A big advantage is their low cost.\u00a0 The annual fee for investing in the S&amp;P 500 is some 0.10 percent versus an average of almost 1.5 percent for actively managed funds.\u00a0 Index funds have no research analyst costs or multimillion dollar money manager salaries to pay.<\/p>\n<p>Mark Kritzman of Windham Capital Management simulated an imaginary investor using index funds, mutual funds, and hedge funds.\u00a0 Index funds had the highest rate of return at 8.27 percent, since the actively managed mutual fund\u2019s costs are 3 times higher, and the hedge fund six times higher.<\/p>\n<p>According to millionaire philanthropist Robert Wilson, \u201cI\u2019d say as a general rule put it in index funds.\u00a0 I don\u2019t see why small investors should horse around with money managers.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another financial tip the new book, New Frugality.\u00a0\u00a0 You\u2019re smarter than a wall-street money manager. Index funds duplicate the performance of a particular stock market index.\u00a0 The most famous equity index fund is the S&amp;P 500.\u00a0 It is made up of stocks of the 500 largest publicly traded U.S. companies.\u00a0<a class=\"more-link\" href=\"https:\/\/blogs.davenportlibrary.com\/reference\/frugal-librarian-21-you-power-broker\/\">[Read more]<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,1],"tags":[370,556,320,1064,1063],"class_list":["post-5720","post","type-post","status-publish","format-standard","hentry","category-news-you-can-use","category-reference","tag-frugal","tag-frugality","tag-investing","tag-stocks-and-bonds","tag-wall-street"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pd0CXx-1ug","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/posts\/5720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/comments?post=5720"}],"version-history":[{"count":5,"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/posts\/5720\/revisions"}],"predecessor-version":[{"id":5961,"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/posts\/5720\/revisions\/5961"}],"wp:attachment":[{"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/media?parent=5720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/categories?post=5720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.davenportlibrary.com\/reference\/wp-json\/wp\/v2\/tags?post=5720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}