So yesterday was the first day back for teachers. And as usual, there was a representative from our 403(b) plan administrator. Not only was the presentation more boring than watching grass grow, the rep said some incredibly condescending things.

He championed professionally managed mutual funds for us all. Not only did he fail to mention that the S&P 500 has outperformed 92% of professionally managed large-cap funds the past 15 years, he went on to say that investing in individual stocks was tantamount to gambling. “Leave investing to the professionals,” he said. Can’t we read? Can’t we learn what to look for in the annual reports, 10-K and 10-Q filings, balance sheets, income statements, and statements of cash flow.

“And only professionals can time the market.” First, it’s tough for anyone to time the market, unless you’re Ben Stein. Second, there’s this thing called the Internet (Yahoo Finance, Vanguard, etc.). It is easier than it has ever been for teachers to manage their own investments. And that saves a boat load in administrative fees. The Vanguard fund, VFINX, mirrors the S&P 500 beating the vast majority (about 92%) of these large-cap funds. And you’re looking at a 0.14% expense ratio!

If you went to college to become a teacher, you can learn to invest on your own. Remember, professional money managers lose money all the time.

Also remember that you learned task analysis, instructional strategies, subject content, curriculum planning, educational and adolescent psychology, and school law. You can learn fundamentals of investing.

I invite all my friends and colleagues to feel free to ask me any questions about where to start.