After we wrote our posting “Work Smart, Not Hard,” many individuals have made the obvious remark, “it sounds good in theory, but how can a person like me, who has no interest or knowledge in stocks, the stock market or investing, get nearly +7% compounded over time?”
We’ll default to the most famous investor in the history of modern time, Warren Buffett. According to Buffett:
“Over the 35 years, American business has delivered terrific results. It should therefore have been easy for investors to earn juicy returns: All they had to do was piggyback Corporate America in a diversified, low-expense way. An index fund that they never touched would have done the job (Buffett, Warren. Berkshire Hathaway Annual Report. February 28, 2005. page 4.).”
There you have it. If you have no interest in following the stock market, stocks or investing, then all you need to do is buy the S&P Index Fund, preferably a “low cost” fund. Start at the Consumer Reports link and pick one and do the same in your retirement accounts at work.
Read our article titled “Work Smart, Not Hard” showing how compound interest is the key to your financial success.
