Ask a Fool: Index Funds vs. Managed Funds

In the following video, senior advisor to the Motley Fool's Rule Your Retirement service Robert Brokamp takes a question from a Fool reader, who asks, "My 401(k) has an S&P 500 index fund with an expense ratio that is only 0.05% and has a return of 6.85% so far this year. My other fund has an expense ratio of 0.93% and only returned 4.19%. I'm paying more to get less return! Any suggestions?"

Making the right financial decisions today makes a world of difference in your golden years, but with most people chronically under-saving for retirement, it's clear not enough is being done. Don't make the same mistakes as the masses. Learn about The Shocking Can't-Miss Truth about Your Retirement. It won't cost you a thing, but don't wait, because your free report won't be available forever.

The article Ask a Fool: Index Funds vs. Managed Funds originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.