Welcome to another episode of the Richer Geek Podcast! Join us as Mark Hebner, founder and CEO of Index Fund Advisors, Inc. (IFA), presents a comprehensive 12-step guide to mastering index fund investing. Explore the benefits of passive investing, pitfalls of active trading, and the significance of diversification and risk management. Gain insights on aligning your portfolio with long-term financial goals using Nobel Prize-winning research and practical advice to optimize your investment strategy. Ideal for individuals seeking to shift from speculation to education in their investment journey.

In this episode, we’re discussing…

• Understanding Index Funds: Learn how passively managed index funds outperform speculative investments over time by optimizing risk-adjusted returns.

• Investing Philosophy: Discover Mark Hebner's mission to replace speculation with education in investing, emphasizing the importance of benchmarking performance against index funds.

• Risk Management: Gain insights into the Nobel Prize-winning research that shows diversification through index funds reduces risk while maintaining expected returns.

• Challenges of Active Investing: Explore the pitfalls of active investing and day trading, likening it to gambling, and understand why a long-term, passive approach is more effective.

• Role of Brokers: Uncover the tactics used by brokers that prioritize their earnings over client returns and why working with a fiduciary advisor is crucial.

• Historical Performance: Understand the long-term performance of various indexes, including the S&P 500, small-cap, and value companies, and their implications for future returns.

• Behavioral Finance: Recognize the psychological aspects of investing, including the addiction to trading and how to overcome it by adopting a structured, educated approach.

• Practical Advice: Practical steps for investors to determine their risk tolerance and align their portfolio with long-term financial goals using index funds.

Resources from Mark

LinkedIn | Index Fund Advisors | Index Funds: The 12-Step Recovery Program for Active Investors

Resources from Mike and Nichole

Gateway Private Equity Group | REI Words | Nic's guide