Index Funds

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NGPF Podcast: Tim Talks to Kiplinger Editor and Author Janet Bodnar

It was great to have Kiplinger editor Janet Bodnar on the podcast recently. As a newly minted college graduate, I recall leafing through a Kiplinger magazine (pre-internet) and benefitting from their practical, easy to understand financial advice. As an editor, columnist and author, Janet has an amazing depth of knowledge about personal finance. We focused our conversation on what we should be teaching young people about money as well as the importance of encouraging women to develop financial skills. You will get great advice about investing while learning about Janet’s collecting habits which she gleefully displays on her home refrigerator. Enjoy!

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By |June 19th, 2017|Current Events, Index Funds, Investing, Personal Finance, Podcasts|

The Retail Industry Changed Last Week…NGPF Has Resources Aligned To These Current Events

This has been a big week of news related to the Retail Industry in the U.S., with implications for the economy, jobs, shoppers, and investors. This post will explain the big events for the week, their implications for you and your students while also providing activities and lessons that are aligned to these current events.

What’s Happening?

Decision Tree: Active vs. Passive

Sometimes a simple model or flow chart elucidates a complex question. Here is one example of that principle (from Mr. Zepczynski’s blog):

 

Questions:

Podcasts For Those Long Car Rides…What I Have Been Listening To

Lots of drive time this week, which means lots of good podcast listening. Here are four that I thought you would enjoy:

  • For those looking for entrepreneurial focused podcasts, my new FAVE is Masters of Scale with Reid Hoffman (VC at Greylock and founder of LinkedIn). Here are the two that I have listened to with their key points that stuck:
      • Mark Zuckerberg (Facebook): Learn about the importance of launching “imperfect products” and then listening intently to your customers to iterate and make it better vs. waiting to launch that perfect product. Be close to your customers!
      • Brian Chesky (Airbnb): Invest early and often in customer relationships so you develop empathy and build better products (thanks to all the educators who have taken time with our team over the past few weeks to let us know how we can continue to serve you better!). I love how he describes envisioning what would give your customers an 11-star experience. One of our projects at NGPF this summer:)

Index Funds: What’s the Catch?

Hat tip to Meb Faber for compiling this list of S&P500 Index Funds:

By |May 30th, 2017|Current Events, Index Funds, Investing, Research|

What I’m Reading This Memorial Day Weekend

I love long weekends to catch up on some reading, here’s what has my attention this week:

  • The Other Difference Between Jeans and Mutual Funds (Bloomberg); identifies reasons for Vanguard’s recent domination of the mutual fund industry: “The majority of funds are actively managed and 80 percent or more of them routinely fail to beat their benchmarks net of fees. Clearly, there’s an incredibly low probability that investors will get what they’re paying for. That realization alone doesn’t imply how much funds should charge, but less would be a good start.  
    • Chart showing mutual fund fees declining (from Bloomberg:

NGPF Podcast: Tim Talks To Wealthfront Co-Founder and CEO, Andy Rachleff

Thanks to Andy Rachleff for this great conversation on the NGPF podcast recently. To say Andy has had an amazing career is an understatement. To name just a few of his roles: Founder of a premier venture capital firm (Benchmark), successful venture capitalist, sought after entrepreneurship instructor (Stanford Graduate School of Business) and currently a co-founder and CEO of a financial services disrupter (Wealthfront). Andy shares the insights he has gained over his illustrious career as well as the reasons he is so passionate about Wealthfront’s mission to democratize investing. Listen to this podcast to not only learn more about what makes a successful start-up but also the origin story behind Wealthfront and how automated investing is disrupting the investment management business. Enjoy!

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By |May 15th, 2017|Entrepreneurship, Index Funds, Investing, New Products, Podcasts|

Think You Can Pick A Mutual Fund That Can Beat the Market? Think Again And Buy An Index Fund Instead!

Based on this recently analysis, go ahead and buy an index fund. Over any recent time period (1, 3, 5, 10 and 15 years) you would have trounced actively managed funds. Of course, “past performance is no guarantee of future results,” however, when you see the persistence of index fund success over short, medium and long-term periods, and the primary reason for it (they carry lower fees), I would put my money (and do) on this trend continuing.

Chart from SPIVA U.S. Scorecard Report (only first four lines, full analysis available by clicking on link):