Indexing: The poor man's investment portfolio

By Steve Savant

Ash Brokerage Corporation


Investing in indices has been called the poor man’s investment portfolio. They're generally not managed, so the costs of the funds are relatively low and the volume of diverse company represented is broad based. There are a variety of ways to invest in indices: mutual funds, options, certificate of deposits, annuities and life insurance. They all have differing tax treatment: mutual funds, options or certificate of deposits are taxable, annuities are tax deferred and life insurance can be tax free.

Today on the Business Insurance Zone, national insurance columnist Steve Savant and co-host Eric Palmer discuss the risks, taxation and popularity investing in foreign and domestic indices with the differing product opportunities.