Can a 40-year-old run a four minute mile on a diet of Mars bars and Cheetos?
It’s about as likely as building a portfolio of actively managed mutual funds and (over a lifetime) expecting it to keep pace with a portfolio of index funds, after all taxes and expenses.
If you’re already on track, however, with an efficient portfolio of indexes, how can you juice your investment account even further? Coupling your portfolio with highly touted hedge funds or gambling with puts and options could act as a short term investment steroid (if you’re lucky) but like disgraced sprinter Marion Jones and others who were caught, such shortcuts bring short term glory and long term pain.
Fortunately, there’s a far easier way to increase the size of your eventual retirement account without increasing your risks.