Investor’s Path of Least Resistance

By on September 3, 2010

Jonathan Burton has written a piece for The Wall Street Journal preaching the virtues of simple index-focused portfolios for individual investors. The article looks at the performance of a 50/50 allocation between equities and bonds versus a more speculative allocation. Surprisingly, a 50/50 allocation compares favorably to a more risky 80% equities, 20% bond split over the past 10 and 15 year periods.

Obviously the main allure of investing in index funds is their significantly lower costs and Burton highlights the choices from Vanguard and Fidelity.

Source: The Wall Street Journal

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