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Want to Outperform 98% of Professional Mutual Fund Managers? Buy This 1 Investment and Hold It Forever.

The Motley Fool

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. So, the odds are already against fund managers from the start. Image source: Getty Images.

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You Can Outperform 88% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

Professional fund managers are in charge of investing billions of dollars for investors. They're often highly educated, have years of investment experience, and get paid well for their skills and expertise. But the second factor severely diminishes the returns passed on to investors in actively-managed funds.

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This Simple Investment Strategy Outperforms 88% of Professional Fund Managers Over the Long Run

The Motley Fool

Wall Street is full of extremely smart, well-educated, highly compensated individuals in charge of managing billions of dollars of investors' money. You don't need to be a Wall Street insider to beat most actively managed mutual funds. All you have to do is buy an S&P 500 index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO).

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You Can Outperform 98% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

Professional fund managers are extremely smart, highly educated, hard-working, and ultra-competitive. If you can perform in the top 2% of all professional fund managers on Wall Street, you're sure to find yourself with a very handsome payday at some point. All you have to do is buy a broad-based index fund and hold it for years.

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Surprise: You're Probably Paying a Lot More in Investing Fees Than You Think

The Motley Fool

Here are some shocking statistics via a recent report from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation: 21% of investors don't think they pay any kind of fee for investing. 38% of mutual fund investors think they don't pay any mutual fund fees or expenses.

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3 Little-Known Ways to Avoid Taxes on CDs

The Motley Fool

Most HSAs give you plenty of options to invest your contributions, such as stocks, ETFs, and mutual funds. But whereas interest on a bank CD is considered taxable income, interest earned in an HSA isn't taxed -- so long as you use the funds for medical expenses. Likewise, CDs are usually among this mix.

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Coverdell ESA vs. 529? Which Is Best for Funding a Child's or Grandchild's Education?

The Motley Fool

championed the creation of what are now known as Coverdell Education Savings Accounts (ESA) as another option for folks seeking to finance their kids' higher education down the road. But be aware that each state has its own mix of other 529 program features, including additional tax credits and allowable education expenses.

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