The Best Way To Invest For Retirement

If you talk with 10 different investment advisors, they’ll all have their own opinion as to what they think is the best way to invest. Some prefer actively managed investments. Some prefer passively managed investments. Some advisors like me prefer a 3-tier combination of actively and passively managed investments called a “Skill-Weighted” portfolio. The point is - you need to do some homework and figure out what strategy resonates with you.

Since neither active management nor passive management has superior performance in all market environments or asset classes (large cap, small cap, growth, value, domestic, international, fixed income, etc.), I think it’s smart to incorporate both strategies into your investing plan. Therefore, I’m a staunch advocate for using low-cost index funds, enhanced index funds and exchange traded fund (ETFs) from investments companies such as Vanguard, SEI and Barclays.