Is it a good idea to buy index funds for a retirement plan?
In the “You Ask, We Answer” section of Bloomberg, Craig Toberman, Founder of fee-only financial planning firm Toberman Wealth, addresses this question.
35 year old Eric of Atlanta writes in to ask if buying index funds for retirement are a “good plan” for a passive investor or if there are additional, better options available?
“Low-cost index funds are an excellent starting point, but only one piece of a broader puzzle” Craig says, and argues that most “passive” decision makers are still making active decisions.
He goes on to list the three most important active decisions that all investors must make, starting with “overall percentage allocation to equities versus fixed income”.
Have your own questions about investments and retirement? Read more about Toberman Wealth’s Retirement Planning Services.
Craig Toberman is the Founder of Toberman Wealth – a fee-only financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.
Craig received a Bachelor of Science (B.S.) degree in Agricultural and Consumer Economics from the University of Illinois and a Master of Business Administration (M.B.A.) degree in Finance from Saint Louis University. He is a Certified Financial Planner (CFP), Chartered Financial Analyst (CFA) charterholder, and Certified Public Accountant (CPA).
Craig is a member of the National Association of Personal Financial Advisors (NAPFA), Fee-Only Network, and XY Planning Network.
Craig lives in the greater St. Louis area with his wife, Ally and son, Hank.