There’s a reason why the index fund has won, says Jack Bogle, founder of Vanguard Group. “You shouldn’t buy an index fund because you think it’s a hot performer. Buy it because you’re going to hold it forever,” Bogle told Money Magazine. As a financial advisor, it’s hard to tell investors that they’re paying to not move their money. But the role of the advisor is to stop people from hurting themselves, says Bogle.
Bogle’s indexing advice is for everyone, even his hedge fund-running son.