The Closest Thing to a Sure Thing, Ep 368

Retirement Starts Today

Are index funds really the "sure thing" in investing, or do our emotions get in the way? To help answer that question, we’re going to talk about a Wall Street Journal article by Jason Zweig, which demonstrates the simplicity and challenges that come with investing in index funds.

While these funds are designed to replicate the market at a low cost, actual investor behavior is what can lead to underperformance. We’ll talk about why sticking to this seemingly easy strategy is harder than it looks and explore how to avoid the "behavior gap" that keeps investors from reaching their full potential.

Next, Brett and I team up to tackle a listener question about estate planning. If you’ve already got a financial plan in place but need help with wills, trusts, and powers of attorney, this segment is for you.

We break down what estate planning tools you need to protect your family and your assets, and we’ll also get deep into when it's time to involve an attorney. Estate planning may not be fun, but having a plan in place can prevent huge headaches down the road.

Outline of This Episode

• [0:20] Index funds are a sure thing...right?
• [2:51] Understanding the behavior gap
• [4:00] The temptation to sell
• [7:00] Boring but effective
• [13:17] A real-life coffee conversation
• [17:42] Estate planning essentials
• [19:50] Powers of Attorney: Why you need them now
• [21:47] Don't forget your parent’s estate plan
• [23:50] Navigating health care directives
• [25:00] Final thoughts: Simple, yet hard to do

Resources & People Mentioned

• Messing Up the Closest Thing to a Sure Thing in the Stock Market, by Jason Zweig
• Mind the Gap 2024: A Report on Investor Returns in the US
• The Retirement Podcast Network

Connect with Wall Street Journal contributor Jason Zweig

• Jason Zweig, Wall Street Journal profile

Connect with Benjamin Brandt

• Become a Client: www.retirementstartstoday.com/start
• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Join the newsletter: https://retirementstartstodayradio.com/newsletter
• Dive deeper into retirement planning with Ben at www.RetirementIncome.University

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