A Common Mistake With Index Fund Investing 🚫


Good morning! I hope this email finds you well.

Today's email includes:

--an important lesson about time with loved ones.

--a podcast episode about a common mistake in passive index investing

--three great articles from others...including what one retirement expert has changed her mind about, and an important philosophy on "too much growth"


"You Just Go"

Money is a tool to buy freedom. But acquiring money requires sacrificing freedom. Balancing current sacrifice against future reward is vital.

Done poorly, and you won’t see enough of the people you love.

It’s that simple. And that sobering.

One of the top regrets of the dying is, “I wish I’d stayed in touch more.” Nobody regrets not budgeting or a missed stock pick. They don’t measure regret in dollars.

But they do regret not having the freedom to be with the people they love. They measure regret in time.

Time is ticking. Money isn’t the end. But it’s the means that can help you reclaim the clock.


Your Passive Portfolio is More Active Than You Think...

Sure, you own index funds.

But 99% of passive portfolios have a "shade of gray" that's more active than we realize. Most of us are unaware of that active undercurrent.

It's a risky misconception.

For example: is your all-world index fund the same kind of "passive" as my NASDAQ 100 high-tech index fund?

I say no.

Yet, plenty of "passive investors" feel having all their eggs in the NASDAQ 100 (or S&P 500, etc) is perfectly fine. After all, "it's an index fund."

This episode dives into the "shades of gray" in passive investing and how they affect our portfolios and benchmarks.


The Top 3...

I enjoyed this content recently. I hope you do too.

​3 Things Christine Benz Has Changed Her Mind On...​

Christine Benz is the director of personal finance and retirement planning at Morningstar. (and a guest on Ep 103 of my podcast!)

I enjoyed her commentary here on:

-- the DIY retirement model

-- "all-in-one" investment funds

-- and TIPS bonds

​AI = More Fraud​

This one might be paywalled for you...

But the gist is this:

As AI gets better and better, it's opening up a world of more complex financial fraud.

Be wary.

​Bigger Doesn't Mean Better​

Pre-retirees might see it via "one more year" syndrome.

Retirees have a hard time spending down their assets, for fear their portfolio will no longer go up.

Sometimes I think, "Do I want to stop at 60 clients? Or grow, grow, GROW my firm to something bigger?!"

Ryan Holiday says it starts with, "The discipline to figure out what you actually want your life to look like."

Followed by, "The discipline to not go past the mark you aimed for."


I Help People Retire (Even) Better

I'm a Partner at a fee-only fiduciary retirement planning firm.

We work with clients all over the USA.

If you know someone who needs help, visit PlanWithJesse.com and let's start a conversation.


Until Next Week...

Thank you for reading, listening, and writing back. People like you send me questions every day.

I'd love to hear from you. ​​

All the best,

Jesse Cramer

Jesse Cramer

Retirement is a different game. You’ve spent decades building wealth. Now comes the harder part - turning it into a paycheck that lasts. I’m Jesse Cramer. I help DIY investors turn their savings into a clear, cohesive retirement plan. Join 4000+ weekly readers and 20,000+ podcast listeners.

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