In Warren Buffett’s recent annual letter to Berkshire shareholders, he advised investors to put their money in index funds and be done with it. In fact, he said, that’s what he plans to do with his own money once he is gone.

“My advice to the trustee couldn’t be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”  In other words, Buffett believes even the best financial planners won’t consistently beat the S&P 500, particularly after factoring the cost of compounding fees.