When it comes to investing for retirement, investors often do not know exactly which investments will yield them the best returns over the long run, and in truth, it is very hard for even seasoned investors to tell. Warren Buffett, the billionaire investor, made a bet in 2016 that he would be able to get a better return by just investing in the S&P index than by purchasing a fund run by a bunch of fund managers.
According to Tim Armour, CEO of Capital Group, while it looks like Warren Buffett was right this year, just investing along with the indices may not do much to help you against any market downturns.
Tim Armour says that the best way to get the nest egg you want for retirement is not just to blindly invest, but to invest in those funds where there is a lot of manager ownership and low operating expenses. Armour says that just having a passive fund run on an index can be great during a bull market, but if the market takes a downswing, there is really nothing there to keep the bottom from dropping out on your investment.
Tim Armour earned his MBA from Columbia University his Bachelor’s degree from Middlebury College, and he has spent most of his life working with investors and investing himself. He is currently the CEO at Capital Group, as well as the Chairman, Director, Principal Executive Officer, and Chairman of the Management Committee at Capital Research and Management Company. He was also a former Board Member at the San Janus Capital Group. With over 32 years of experience managing funds, he is one of the foremost authorities on fund management and getting investors the returns that they need to retire. Tim is also very involved in charity, giving thousands of dollars back to his alma mater, Middlebury College, and the International Medical Corps.
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