After 7 years of actively managing my portfolio I have concluded that simple boring index funds are way to go. I did well in tech stocks but have some I'll times entries and exits which kinda took down profits. Do you still believe actively trading would produce better results. I have learned quite a lot in process but now I don't think I would be able to give same time when life gets busy with higher roles, kids etc. Anyone have been successful in managing their portfolios and beating indexes.

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I don’t think anyone ever thought actively performed better. Actually many studies support the market (I.e., a total stock market fund) out performs the majority of actively managed funds

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Statistically, no, it won’t produce better results. Also personally, I did beat the market when I was actively investing, but my portfolio was not well balanced and it was really stressful.

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I don’t believe you can be a full time consultant and actively beat the market by managing your stock.

That said, I do believe there are a small handful of people who do it as their full time job that can beat the market by active managing trades and their clients money. I would be open it seeing their work and moving my stuff over if people find someone like that

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From my experience find you favorite 4 ETFs pick 5 stocks from each you have most conviction on. Make those 20 stocks 60% of you portfolio. Put the other 40% into low cost index funds (VOO or VTI). Thank me later

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Also make sure at least 30-50% of the individual stocks pay some kind of dividend

I think you’re on to something and that it’ll be the right move. Either do some ETFs or do something like the Schwab Intelligent Portfolios - it’s a great and well-performing offering. That combined with their automatic tax harvesting (I was surprised how effective it was when I did the 2020 tax return recently)… I couldn’t be happier. I do both though: I’ve the Bogleheads 3-4 ETFs (doing them through Fidelity), and then the Intelligent Portfolio. No more day to day headaches.

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What ETF would you recommend? Im 24 and will likely need the money in the next 3-4 years for a down payment so nothing tooo risky

Thank you!

Statistically you’re better off in low cost index funds

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