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Why passive investing is best for almost everyone saving for retirement

Yahoo Finance
Summary
Nutrition label

85% Informative

Index funds routinely clobber funds actively managed by professional stock pickers.

Just 36% of actively managed US large-cap mutual funds delivered bigger gains than their Russell 1000 index benchmarks in 2024 .

Among over 1,900 US equity mutual funds and ETFs tracked by Morningstar , 19% beat the S&P 500.

83% of 401(k) participants used target-date funds, according to Vanguard .

The tax benefits are another big reason these have appeal for retirees.

For current retirees, index funds make a world of sense for a few key reasons.

“Reducing the moving parts in your portfolio makes life simpler for your loved ones if they need to manage your finances at any point in time”.

VR Score

87

Informative language

87

Neutral language

52

Article tone

informal

Language

English

Language complexity

46

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

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