Matt Jude, CFP®, ECA, Financial Advisor, discusses the power of index investing.
It is tempting to try to do better and outperform, and that’s how these active fund managers charge a higher fee. That’s how they make their money is by saying, “We’re going to outperform, or that’s our goal.” But there’s more than just company fundamentals and company earnings that goes into determining the value of a stock. And it’s a really difficult or basically impossible thing to get right and to get right consistently. So by doing index investing, which is how we do it at Rebalance, you are exposing your portfolio to the growth of thousands of different companies. And by doing that, you’re reducing the risk that you take on. You’re not taking bets on any single stock or company, and that’s the best way we think, and a lot of other really smart people out there think that’s the best way to do it.
I use the same investment techniques for myself and my family as I advise Rebalance clients to do. I use index investing. I’m not making bets on individual stocks. I do a financial plan. I have one for myself and my wife. And we think about our short-term needs, our long-term needs, and we try to be proactive. And that’s what I encourage people to do. And, that helps prepare you for the unknown, and it can really grant some peace of mind knowing that you’re prepared for challenges to come. I love the team at Rebalance. I love the people who I work with and the owners. I know the owners. It’s not some corporation out there with faceless CEOs. So we’re a very tight-knit group and we aim to pass that feeling through to our clients as well. We want them to feel like we’re family, we’re partners for them. You should come to Rebalance if you want super high level service and advice at reasonable costs. And that’s really the balance that we strive to achieve for people.
