Quotes from Taylor Larimore

High inflation rates may come along and diminish purchasing power.

Paul Farrell, columnist for CBS Marketwatch and author of The Lazy Person's Guide to Investing: "So much attention is paid to which funds are at the head of the pack today that most people lose sight of the fact that, over longer time periods, index funds beat the vast majority of their actively managed peers.

Burton Malkiel, professor of economics, Princeton University and author of A Random Walk Down Wall Street: "Through the past thirty years more than two-thirds of professional portfolio managers have been outperformed by the unmanaged S&P 500 Index.

Paul Samuelson, first American to win the Nobel Prize in Economic Science: "The most efficient way to diversify a stock portfolio is with a low fee index fund. Statistically, a broadly based stock index fund will outperform most actively managed equity portfolios.

Asking people who sell financial products for financial advice creates a potential conflict of interest.

If you find yourself with liquid assets of between $200,000 and $2 million when you reach your mid- to late fifties, give serious consideration to buying long-term care policies for you and your spouse.

Jason Zweig, senior writer and columnist at Money magazine and coauthor of the revised edition of Benjamin Graham's classic, The Intelligent Investor: "If you buy-and then hold-a total stock market index fund, it is mathematically certain that you will outperform the vast majority of all other investors in the long run. Graham praised index funds as the best choice for individual investors, as does Warren Buffett.

Whenever possible, we will use index funds with their low cost and low turnover.

Coverage cannot be canceled for any reason other than for failure to pay premiums.

An index fund dooms you to mediocrity? Absolutely not: It virtually guarantees you superior performance.

With an index fund, the certainty of keeping up with the market is a very worthwhile trade-off for the possibility of beating it.

Warren Buffett, chairman of Berkshire Hathaway and investor of legendary repute: "Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.

Young people shouldn't fall for it, since they normally don't have dependents who rely on them for support. Everyone should save and invest their money and not buy life insurance until the situation requires it.

Experiments have determined that at the emotional level, we feel the pain of a $100 loss twice as much as we enjoy the benefit of a $100 gain. Consequently, many people once burned by a stock market loss vow to never invest in it again. As Mark Twain said, "A cat who sits on a hot stove will never sit on a hot stove again, but he will probably never sit on a cold one either.

it's very important when using mutual funds in taxable accounts to use tax-efficient mutual funds or ETFs. Tax efficiency is relative. The idea is to locate the least tax-efficient funds in your tax-advantaged accounts and the most tax-efficient funds in your taxable account.

Rebalancing forces us to sell high and buy low. We're selling the outperforming asset class or segment and buying the underperforming asset class or segment. That's exactly what smart investors want to do.

only way to be sure how the redemption fee is assessed in a fund that you're considering investing in is to read the prospectus carefully.

The last suit we wear doesn't need any pockets.

Invest most or all of your money in index funds. Keep your costs of investing and taxes low.

Magellan taxable investors have a Hobson's choice. They must continue to pay high annual income and capital gains taxes by holding a tax-inefficient and underperforming fund—or pay a capital gains tax on all past profits, should they decide to exchange to another fund.

Using past performance to pick tomorrow's winning mutual funds is such a bad idea that the government requires a statement similar to this: Past performance is no guarantee of future performance. Believe it!