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What If Everybody Invested With Index Funds?

Plenty of people have asked me, “What if everybody invested with index funds? Would the strategy reach a danger point?”

Currently, index funds represent about 14% of the money in the stock market.

But if you want to read what might happen if everybody jumped on board…

Image by Pixabay

I’ve written about it here.

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

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6 Responses

  1. Jose says:

    Hi Andrew,

    Have just finished reading your first book Millionaire teacher and planning on starting the next one. I am an International school teacher and another colleague of mine recommended your book.

    I have searched everywhere for advice and no one has been as helpful as your book, unfortunately I still have sooo many questions and don’t know where to turn.

    I have just moved to Thailand so I am not sure how to best start investing. I have no debts and have actually just started payments on a house in Europe. This will lessen the amount I am able to save but I would like to put something in place.

    Can you please advice on where I can turn, or if I should try and open an account in a nearby country to start investing, etc? I am not sure whether I should contact a firm like Vanguard to see if it is possible to invest with them?

    Finally one question I have from your book is, how much do you need to start investing. That wasn’t clear to me. Should I start investing small amounts every month or should I save and invest when I have a certain amount?

    Some companies seem to require quite big amounts of money before you start investing?

    Thank you for your Help

  2. Jose says:

    Great! Thanks, Ill start on your other book soon! Will need to wait a while before I start investing then because I want to try and pay off the house I have bought as fast as possible! (like you did with your property!)

    Not American, half Spanish so planning on retiring in Spain. Any recomendations on a brokerage for europeans?

    Again, based in Bangkok!

  3. JB says:

    Hi Andrew,
    My wife and I have been teachers abroad for 7 years total. Thailand is our current assignment. We are American. We were curious, what kind of kick back of fees, if any at all, schools are getting for teachers joining the Provident Fund (CIMB) ? We still have not determined the management fees (they are not clearly stated) or if funds can be withdrawn at any time. The school contributes 50% up to a salary max of 7% after 3 years, then 100% (up to 7%) after 5 years. In the first 3 years, contributing would lower Thai tax liability (we aren’t sure how much) but the 50% school match (3.5% of the max 7%) could be effectively neutralized if the fund fees are 3.5% which leaves us wondering why we wouldn’t just send the 15% OR more back home into our TD ameritrade account and invest monthly in an index fund you recommend in your book. Finally, if the fund fees are 3.5%, could some of that be kicked back to the school, is that common practice?

    • Hi JB,

      It isn’t likely that your school is getting a kickback.
      But I do have one important question. How long is the term of your investment? In other words, if you quit working at your school at the end of this year, would you have full access to this money (without any kind of redemption penalty) or must it stay with the firm for a number of years?


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