John Bogle's Latest Advice: A 'Gatekeeper' For Your Nest Egg
Mutual funds, which have topped $13 trillion, are the way many Americans interact with the financial markets. You may have come across mutual funds when you set up an individual retirement account or a company-sponsored retirement account like a 401(k).
A "basket" of stocks, bonds or both, mutual funds are seen as safer to own than individual stocks. Having many in one basket spreads the risk, especially over time. But high fees, lack of diversification, or a focus on short-term gains can put your nest egg at risk.
John Bogle, founder of the Vanguard Group of mutual funds and a giant in the mutual fund industry, is known for his long-term approach to investing and for his faith in the stock market. Bogle, who is 83, is president of Bogle Financial Markets Research Center and the author of several books, including The Clash of the Cultures: Investment vs. Speculation.
He spoke recently with NPR's David Greene about the need for a government "gatekeeper" to protect Americans' retirement savings.