10. Investment Professionals Know How to Beat the Market
Some investors might choose to forgo investing in index funds in favor of having an investment manager. However, that doesn’t necessarily guarantee better returns over time.
“Numerous peer-reviewed studies have shown that investment managers fail to outperform a simple, low-cost index fund over long periods of time,” Lumby said. “The managers that do well in one time period usually do poorly in the next, making it impossible to pick a winner ahead of time. [Instead] purchase low-cost index funds and stay invested through the good times and bad.”
