Close Menu
Creating Freedom Through Financial Independence

Podcast

Podcast: Why Invest in Index Funds?

October 6, 2020


In this episode…

We break down the reasons why index funds are recommended as one of the best ways to invest for financial independence.

If you’re new to investing, index funds are a very simple way to invest in the sharemarket.

You effectively own a slice of all the largest companies (say the ASX 300 for example), and benefit from the returns they deliver over time.  But you’ll learn that and a whole lot more in the episode! 🙂

 

Listen to the show…


(or download the mp3 file)

 

Discussion points…

  • You get what you don’t pay for?  (03:00)
  • How turnover and tax affects your returns  (04:30)
  • Diversification, sectors and the future  (09:37)
  • The biggest winners and distribution of returns  (12:46)
  • Active managers and the SPIVA reports  (16:04)
  • Harvesting business returns  (19:33)
  • What is self-cleansing?  (21:01)
  • The efficiency of markets  (25:58)
  • Difference between ETFs and index funds  (31:51)
  • Listener Question:  Does philanthropy play a role in your FIRE journey?  (37:07)

Resources…

Join my mailing list below and get future content in your inbox…

 

Want more FIRE & Chill? 

Check out the complete list of episodes on the FIRE and Chill podcast page.

Do you have something to add to this discussion?  Share your thoughts in the comments below…

2 Comments

2 Replies to “Podcast: Why Invest in Index Funds?”

Leave a Reply

Your email address will not be published.

See All
  • Reader Interview: A Real-Life Millionaire Next Door

    I chat with a local Perth reader about his journey to financial independence and his new life of freedom, after building considerable wealth though decades of saving, investing and business ownership.

  • The Incredible Power of Momentum

    Financial independence can seem complex, but is easily broken down into simple actions. In this article, I explain how to beat procrastination and take your first steps, building momentum, and how surprisingly powerful it is.

See All