It’s not every day you get an email like this:

‘I started investing in Vanguard index funds when I was 19 with just shy of $10k in savings and have been putting in regular amounts monthly. That pot has now swollen up to close to $450k which I think is not bad for a 30-year-old who came to this country as an International student.’

How impressive is that!

In case you’re wondering, I got that great email from a long-time Investor Club reader and Rask Invest member.

Coincidentally, about the same time my brother-in-law, who is relatively new to investing, said to me:

“Index funds and ETFs just make sense. Why don’t more people do that?”

Investing via low-cost index funds can be a good way for many people to get exposure to the sharemarket, the bond markets, and property. Repeated studies, such as those by S&P, show low-cost index funds outperforming ‘active’ professional investors over long periods of time.

But to explore the answer to that question in a little more detail I recently went in search of a man who is a leader at one of the world’s largest index fund providers, Vanguard.

In the latest episode of The Australian Investors Podcast I talked with Robin Bowerman, Vanguard Australia’s Head of Corporate Affairs.

Robin Bowerman – Vanguard

Robin is a former journalist, an author and has been with Vanguard Australia since 2003.

Vanguard is the world leader in low-cost index funds and exchange-traded funds (ETFs). It has changed the world of finance for almost every Australian, whether we choose to admit it or not.

Therefore, I think some of the talking points in this episode should be heard and understood by investors of all stripes. Robin and I talk about his journey, common failures by smart investors, the culture at Vanguard, why almost all active funds underperform over many years and the prospects for index investing going forward.

We begin with Robin’s journey long before he started at Vanguard.

Before Listening To The Podcast, Watch:

Download an Episode!

You can find the podcast on Rask Finance or on any of your favourite podcast portals, including:

If you want to nominate a guest or ask me a question you can get in touch with me on any of our websites or on Twitter (@owenrask).

Cheers to our financial futures!

Owen Raszkiewicz
Lead Adviser of Rask Invest

 

Disclaimer: This article contains general financial advice and information only. That means the information does not take into account your objectives, financial situation or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. Please read our financial services guide (FSG). Always read the product disclosure document (PDS) before investing in an index fund, ETF or managed fund. At the time of publishing, Owen Raszkiewicz does not have a financial interest in any companies mentioned.

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