Charles Schwab Agrees with Me - He Loves Index Funds and Says You Should Concentrate on Your Career

Money magazine has a short interview with Charles Schwab in its January issue and surprise, surprise he recommends index funds. In particular, he has some very nice things to say about this type of investment including the following:

You've got to understand that markets go both ways, up and down. Over longer periods, stocks generally have always gone up. But any specific stock may never come back. Buy an index fund, and you're going to have long-term growth almost to a certainty. Buy an individual stock, and you never know.

In addition, he states:

Buy index funds and ETFs. That might not seem like enough action to a 25-year-old, but it's the smartest thing to do. Put most of your energy into your work and learn to communicate. I think the people who become really successful are those who sense what others are feeling and how to make them comfortable.

I'm tracking with him 100% on these answers. Specifically, I agree that:

1. Index funds make great investments.

2. You should focus on your career -- it's your single greatest financial asset.

Comments

[Lord]

Careers are not what they once were. Don't focus on them to the neglect of your investing. It will be with you much longer.

[BigBuddha]

May I suggest that it's not your career that is most important but protecting YOUR "ability to earn". Today, job security is not what it once was where our grandfathers would expect and be expected to work for the same company for their entire life moving up the ranks by pure age seniority alone. Today many people chop and change positions, I would hope to at least a better paying career or one that provides a better lifestyle.

So whilst it is always important to work hard and strive to do the best you can when working, you must also think beyond that and look towards maximising your investments because ultimately at some point you'll have to retire and live off the return from assets you have acquired throughout your working life.

Also if you are diligent enough and with abit of luck you can have the "choice" of whether you work or not because your accumulated assets provide sufficient income to support your families lifestyle. Now wouldn't that be a grand idea?

Also I would advise anyone, without hesitation, to get some form of INCOME PROTECTION INSURANCE Policy, as this ensures that if u do become injured or sick and cannot continue to work then at least you will be able to recieve a regular income.

[C-Money]

Stephen Pollan and Mark Levine in "Die Broke" make a great point about always looking for that next job that will benefit YOU the most. Better pay, more perks. BigBuddha is right, this day and age, loyalty to a single company is rare. It is hard to be loyal when many companies see their employees as disposable.

Die Broke is also an interesting read. You can usually find it for a dollar or so at a resale book store.

-C$

[Kripal Singh]

Charles Schwab think career is his biggest asset as he made most out from his investment business.