BiggerPockets Money Podcast Wall Street Pro Reveals Why He Ditched Trading for Index Funds
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Jun 27, 2025 
Victor Haghani, founder of Elm Wealth and former Wall Street trader, shares his fascinating journey from high-stakes finance to advocating for low-cost index fund investing. He discusses why his extensive trading experience led him to prefer simplicity in managing wealth. Victor highlights key strategies for achieving financial independence, reveals psychological traps detrimental to saving, and underscores the importance of adapting asset allocation as one ages. His insights offer a fresh take on personal finance for anyone seeking stability and growth.
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Wall Street Veteran's Investing Journey
- Victor Haghani worked on Wall Street for nearly 20 years without focusing on personal investing.
- His experience at LTCM taught him painful lessons about diversification and overconfidence.
Index Funds vs Active Management
- Actively managed funds generally underperform index funds after fees and taxes.
- Index funds offer better risk-adjusted returns due to lower fees and broader diversification.
Earnings Yield Predicts Returns
- Stock market's earnings yield relative to safe assets like TIPS predicts long-term returns.
- When the spread is low, holding mostly stocks may not justify the risk; bonds become more attractive.
