The origin of the 60/40 strategy lies in the research of American economist Harry Markowitz, a longtime professor of finance at the University of California, San Diego, who died in 2023. He was renowned for his 1950s work on modern portfolio theory, which argued investors should blend a mix of high-risk, high-return assets with low-risk, low-return assets. For his work on reducing investor exposure to risk through diversification, which was acclaimed for its “algebraic simplicity,” he won the 1990 Nobel P ...

The S&P 500 includes 500 companies in various top-performing industries. Its broad representation means you’re not tying your funds to a tiny slice of the economy. Buffett likes it for everyday investors because it’s a simple yet effective way to spread your money around.Index funds are investments that track the return of a market index, representing a particular section of the stock market. The Standard & Poor’s 500 Index is one such example.In this day and age, you can earn passive income from more than ...