Comment by protomok

+1 for Index investing - also called passive investing, couch potato investing etc. It is so simple and elegant I can put it in code:

    // Decide asset allocation based on risk tolerance.   E.g. 75% Stocks / 25% Fixed income
    set_asset_allocation(risk_tolerance)

    // Determine which index you want to track. E.g. 25% Canada (TSX)
    // 25% US (S&P500), 25% Developed World (MCSI EAFE)
    select_funds(list_of_funds)

    // Set up automatic purchase plan so your account automatically purchases the funds bi-weekly or monthly.
    enable_auto_purchase(name_of_financial_institution)

    while (alive && working)
        
        // Live and not worry about investments. Instead focus on coding, knitting, cow tipping, etc.
        live(1 year)
        
        // Buy/Sell more units of your funds to return to desired asset allocation
        rebalance()
    done

    retire()

And if history repeats itself you will outperform the top money managers >50% of the time. Check this PDF for the active money managers VS index fund historical results: http://ca.spindices.com/documents/spiva/spiva-us-yearend-201...