Will have to agree with the common sense approach of the Vanguard Index Funds.

Instead of "actively" trying to guess the ups and downs of the market, Vanguard simply uses their buying power to purchase stocks in bulk and in-line with the philosophy of the fund. Thus, their trading rates are very low (probably all done with computers; who needs a "manager"?).

My workplace offers, in addition to their own diversified fund (7% of my paycheck is matched, and goes into it, no opt out), options for my own investments into 15 other funds, half of which are Vanguard Index Funds.

I invest in 20 % each of Vanguard Index Small Cap/Mid Cap/S&P 500 + 40% in International and have done quite well...I had 40.3% in 2006...

Until 2008...the worst first 6 months since 1971 (another parallel between Nixon and Bush Jr.).

At 5/31, my NW = $250K*; today it's $236K, INCLUDING 2 months worth of pay/investing (i.e., not a static amount).

*-For one brief, shiny moment, I was a "Quarternaire" and was getting ready to buy my first monocle.