With Michael Phelps stacking up his gold medals in Rio, this got us thinking about stacking up our cash money. When it comes to investing, we always recommend a well diversified approach with low fees. That being said, we tried to get fancy by picking individual stocks and timing the market over the last year.
Did it work?
Nope. We looked at our annual performance from August 1, 2015 through July 31, 2016. Over the year we jumped into and out of a variety of stocks…and failed miserably. While the stock market had plenty of ups and downs, the S&P 500 returned a respectable 5.61%. Our portfolio returned -2.06%. Yikes.
A Word To The Wise
Had we simply invested in the S&P 500 (a.k.a. the biggest & best 500 companies in the USofA) our portfolio would be worth 7.67% more. Going forward, we will be taking a healthy dose of our own medicine by leveraging a simplified approach to investing – and you should too. Broad market funds such as the iShares S&P 500 ETF (ticker IVV) and Vanguard’s S&P 500 ETF (ticker VOO) are our TOP picks. Take our advice by investing in one of these funds and sticking to it. We plan on doing the same.