What's the Difference Between an Index Fund and a Mutual Fund?

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A mutual fund is simply a vehicle for holding a diversified portfolio of securities. An index fund owns an index like the s and p 500, which is large cap stock. If you have aa us Large cap index fund, is going to go up about ten % a year on average. The problem with actively manage funds whether few problems. Most active managers don't beat their bench mark. Over longer periods of time over nine out of ten of them do. And not by a little bit, by about 400 basis points er, four full per centage points a year.

In this special episode of the show Shermer and Green discuss one of the most important and yet poorly understood concepts in modern society: money and why it matters. They discuss: the origins of money, and how to make it work for you, how the stock market works, the power of compound interest, the secrets of millionaires, the difference between a IRA, 401(k), and a Roth IRA, hedge-fund managers and investment advisors, the relationship between risk and reward, the relationship between saving and spending, the problem with free market capitalism, money, happiness, and meaning, and the role of luck and contingency in how lives turn out.