{"id":63,"date":"2016-01-09T12:07:02","date_gmt":"2016-01-09T12:07:02","guid":{"rendered":"https:\/\/kuverablog.wordpress.com\/?p=63"},"modified":"2019-07-11T02:44:00","modified_gmt":"2019-07-11T02:44:00","slug":"010-why-investing-is-so-complicated-and-how-to-make-it-simpler","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/","title":{"rendered":"Why investing is so complicated, and how to make it simpler"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d65023b29d1\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d65023b29d1\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Dont_leave_a_lot_of_money_in_cash\" title=\"Don\u2019t leave a lot of money in cash.\">Don\u2019t leave a lot of money in cash.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Spend_time_in_managing_your_long_term_investments\" title=\"Spend time in managing your long term investments.\">Spend time in managing your long term investments.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Dont_depend_on_your_Employer-provided_pension\" title=\"Don\u2019t depend on your Employer-provided pension.\">Don\u2019t depend on your Employer-provided pension.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Buy_Index_funds_where_possible\" title=\"Buy Index funds where possible.\">Buy Index funds where possible.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Control_your_investment_fees_like_a_hawk\" title=\"Control your investment fees like a hawk.\">Control your investment fees like a hawk.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Ensure_that_the_adviser_is_being_paid_by_you_and_not_the_Mutual_Fund_company\" title=\"Ensure that the adviser is being paid by you and not the Mutual Fund company.\">Ensure that the adviser is being paid by you and not the Mutual Fund company.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Follow_a_program_like_ours_with_good_default_choices_and_frequent_and_timely_reminders\" title=\"Follow a program like ours with good default choices and frequent and timely reminders.\">Follow a program like ours with good default choices and frequent and timely reminders.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/#Invest_early_invest_often_and_invest_for_the_long_term\" title=\"Invest early, invest often, and invest for the long term.\">Invest early, invest often, and invest for the long term.<\/a><\/li><\/ul><\/nav><\/div>\n<p>We came across an informative article from Prof Sendhil Mullainathan of University of Chicago about long term investing. It\u2019s a long article but well worth the time spent reading it. You can<a href=\"http:\/\/www.nytimes.com\/2015\/07\/12\/upshot\/investing-in-the-dark-the-biggest-cost-of-fear-is-paralysis.html?_r=0\" target=\"_blank\" rel=\"noopener\"> read it here<\/a>.<\/p>\n<p>Here are 8 things to watch out for to make investing simple (with excerpts from the article):<\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Dont_leave_a_lot_of_money_in_cash\"><\/span>Don\u2019t leave a <a href=\"\/001-start-investing-today-a-ka-the-power-of-compounding\/\" target=\"_blank\" rel=\"noopener\">lot of money in cash.<\/a><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>It leads to regret later. <em>\u201c<\/em><em>And the rest of my money was in cash, earning virtually nothing; how had I let it sit there for so long?\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Spend_time_in_managing_your_long_term_investments\"><\/span>Spend time in<a href=\"\/006-a-simple-d-i-y-investment-framework\/\" target=\"_blank\" rel=\"noopener\"> managing your long term investments.<\/a><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><em>\u201c<\/em><em>A<\/em> <em>recent survey..<\/em><em>\u00a0&#8230;found that most of us spend twice as much time choosing a car as we do to choose investments that are supposed to support us for years.\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Dont_depend_on_your_Employer-provided_pension\"><\/span>Don\u2019t depend on your Employer-provided pension.<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><em>\u201c<\/em><em>Pensions have been disappearing, for many reasons. And many of the remaining ones are underfunded and vulnerable.\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Buy_Index_funds_where_possible\"><\/span>Buy Index funds where possible.<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><em>\u201c<\/em><em>For a long time, the simple investment advice given to consumers has been \u201cbuy an index fund.\u201d Index funds are such standardized products\u2026that just about all of them were initially low cost while offering wonderful diversification.\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Control_your_investment_fees_like_a_hawk\"><\/span>Control your investment fees like a hawk.<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><em>\u201c<\/em><em>And these fees are nothing to be scoffed at \u2014 paying 1 percent more every single year in fees can compound over a lifetime to noticeably lower returns.\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Ensure_that_the_adviser_is_being_paid_by_you_and_not_the_Mutual_Fund_company\"><\/span>Ensure that the adviser is being paid by you and not the Mutual Fund company.<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><em>\u201c<\/em><em>If you\u2019re seeking advice, ask yourself one simple question: \u201cIf I\u2019m not paying for this adviser, where are they getting their money?\u201d If you don\u2019t know the answer, you may have a problem.\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Follow_a_program_like_ours_with_good_default_choices_and_frequent_and_timely_reminders\"><\/span>Follow a program like ours with good default choices and frequent and timely reminders.<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><em>\u201c<\/em><em>A\u00a0<\/em><em>recent study<\/em><em>\u2026<\/em><em> showed that timely reminders and programs with good default choices can help ensure that good advice is followed. People in well-designed experimental programs who are given sound advice and plenty of reminders tend to save more.\u201d<\/em><\/p>\n<h5><\/h5>\n<h5><span class=\"ez-toc-section\" id=\"Invest_early_invest_often_and_invest_for_the_long_term\"><\/span>Invest early, invest often, and <a href=\"\/002-stocks-for-the-long-run\/\" target=\"_blank\" rel=\"noopener\">invest for the long term.<\/a><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>The biggest cost of fear is paralysis. <em>\u201c<\/em><em>It is easy to make a mistake in choosing investments. But in an effort to avoid an error, I had been making an even bigger error. As I procrastinated, my money was un-invested and earning zero returns.\u201d<\/em><\/p>\n<p>Visit <a href=\"http:\/\/www.kuvera.in\/\" target=\"_blank\" rel=\"nofollow noopener\">www.kuvera.in<\/a> to invest in &#8220;Direct Plans&#8221; of Mutual Funds and save BIG on commissions!!!<\/p>\n<p>If you like this post, share the love below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We came across an informative article from Prof Sendhil Mullainathan of University of Chicago about long term investing. It\u2019s a long article but well worth the time spent reading it. You can read it here. Here are 8 things to watch out for to make investing simple (with excerpts from the article): Don\u2019t leave a [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":1050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[91],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why investing is so complicated, and how to make it simpler - Kuvera<\/title>\n<meta name=\"description\" content=\"8 things to watch out for to make investing simple from Prof Mullainathan of University of Chicago. A really quick read with profound insights.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuvera.in\/blog\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why investing is so complicated, and how to make it simpler - Kuvera\" \/>\n<meta property=\"og:description\" content=\"8 things to watch out for to make investing simple from Prof Mullainathan of University of Chicago. 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A graduate of IITD and Chicago Booth, he managed a long-short equity strategy for Morgan Stanley before starting Kuvera.","url":"https:\/\/kuvera.in\/blog\/author\/rustyhk123\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts\/63"}],"collection":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/comments?post=63"}],"version-history":[{"count":11,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts\/63\/revisions"}],"predecessor-version":[{"id":3142,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts\/63\/revisions\/3142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/media\/1050"}],"wp:attachment":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/media?parent=63"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/categories?post=63"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/tags?post=63"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}