> "buy and hold the S&P 500 until you're ready to retire"
That is bad advice.
VGT Vanguard Technology ETF has outperformed S&P 500 over the past 20 years.
All the people who say “VTSAX and chill” disappeared in the past 3-4 years because their cherished total passive index fund is no longer the best over long horizons. And no, the markets are not efficient.
Given the techie audience here, I want to caution that investing in the same industry as your job is a kind of anti-diversification.
A really severe example would be all the people who worked at Enron and invested everything in Enron stock.
Even if your employer/investments aren't quite so fraudulent, You don't want to be in a situation where you are long-term unemployed and are forced "sell low" in order to meet immediate needs. If only one or the other is hit, you can ride things out more effectively.
That is bad advice.
VGT Vanguard Technology ETF has outperformed S&P 500 over the past 20 years.
All the people who say “VTSAX and chill” disappeared in the past 3-4 years because their cherished total passive index fund is no longer the best over long horizons. And no, the markets are not efficient.