Here's on reason why I love Vanguard: common-sense advice. In this piece, they give readers four tips for remaining calm in turbulent markets. Their list:
1. Maintain a long-term perspective.
2. Tune out the headlines.
3. Be balanced and diversified.
4. Have a plan and stick to it.
My thoughts on these:
1. Exactly. That's why I invest more when the market turns down.
2. I try to tune out the media all the time, but a market downturn is an especially good time to ignore them.
3. Asset allocation is key to strong, long-term investment results (as is regular rebalancing of your portfolio to keep your asset allocation in line.)
4. Other than my asset allocation, my plan is regular monthly contributions -- both to my 401k and taxable accounts -- as well as annual contributions to our IRAs. We'll keep socking away money no matter what the market's doing.
I love LOVE Vanguard! That's why all of my retirement assets are there. They just GET it. Low expense ratios, phenomenal mutual funds. Even the sub-prime mess, they weren't really affected because they passed on those type of investments initially. Their fees are in line with their actual costs of doing business (aka select electronic statements and we'll waive the fee.) As soon as I can scrape together the $3000 minimum, I'm keeping my Emergency fund in their Money Market account as well.
Posted by: Kira | February 29, 2008 at 11:37 AM