Do Actively Managed Funds Perform Better Than Index Funds In Volatile Markets? #312
Release Date: 06/30/2026
5 Things You Should Evaluate During Medicare Open Enrollment, #328
Retire With Ryan
Medicare open enrollment is here, running from October 15th to December 7th, and it's especially important for those who rely on Medicare. Plans change each year—and so may your needs. Not reviewing your Medicare coverage could leave you exposed to unexpected costs or disrupt your access to preferred doctors and medications. On this week's show, I explore five key steps to help ensure you get the right coverage for 2027. You will want to hear this episode if you are interested in... [01:40] Reviewing Medicare coverage for 2027 [02:49] How to check provider status: annual notice of...
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Year-End Tax Moves For Pre-Retirees To Consider in 2026, #327
Retire With Ryan
For those actively planning for a secure retirement, smart tax planning is essential—especially as 2026 comes to a close. Tax laws and contribution limits keep evolving, and timely adjustments can help you keep more of your hard-earned money. On the show this week, I share seven critical tax strategies that can boost your retirement savings while minimizing your tax liability. Here’s a deeper look at each move and how to integrate it into your financial plan. You will want to hear this episode if you are interested in... [01:41] Maxing out pre-tax retirement plans [04:32] Making...
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Social Security 2027 COLA Update, #326
Retire With Ryan
I break down the upcoming Social Security cost-of-living adjustment (COLA) for 2027, share my predictions on the new numbers, and explain what you should do to prepare. With inflation still affecting retirees, I explain how the COLA is calculated, what it means for your benefits, and the factors that could affect your retirement income next year. This episode has essential tips to help you make the most of the upcoming increases and manage your retirement finances confidently. You will want to hear this episode if you are interested in... [01:10] projected 2027 COLA estimates ...
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What If I Retire Right Before A Market Crash? #325
Retire With Ryan
What should you do if the stock market crashes right after you retire? In this episode, I discuss what happens if you experience a major market decline in your early retirement years, explain the concept of sequence of return risk, and share a few strategies to safeguard your hard-earned nest egg and maintain peace of mind. You will want to hear this episode if you are interested in... [01:20] What to do if the stock market crashes right after retiring [04:09] Sequence of return risk explained [07:14] Preparing for market declines in retirement [13:43] Tax strategies during market...
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What Happens To My HSA When I Enroll In Medicare? #324
Retire With Ryan
How much have you thought about Health Savings Accounts (HSAs) and what happens to them once you enroll in Medicare? Whether you’re nearing age 65, wondering if you can keep contributing to your HSA, or curious about how you can use your HSA funds in retirement, this episode covers it all. I explain the rules around HSA contributions after enrolling in Medicare, the types of medical expenses you can pay for tax-free, and what happens to your HSA if there’s still money in it after you pass away. You will want to hear this episode if you are interested in... [01:51]...
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5 Tax Mistakes To Avoid In Your Initial Retirement Years, #323
Retire With Ryan
As you transition into retirement, tax planning might not be at the top of your to-do list—but overlooking it can lead to costly mistakes. This week, I break down the five biggest tax pitfalls new retirees face, from unexpected taxes on Social Security benefits to costly Medicare premium surcharges and missed Roth conversion opportunities. I’m also sharing a few of my favorite strategies to avoid unnecessary state taxes and manage your retirement distributions with confidence. You will want to hear this episode if you are interested in... [01:45] Without planning, your risk...
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5 Year Roth IRA Rule People Get Wrong, #322
Retire With Ryan
Roth IRAs are a powerful retirement tool, much loved for their promise of tax-free growth and withdrawals. But embedded in the rules for Roth IRAs are two little-understood 5-year rules. Misunderstanding these can trip up even savvy savers, potentially exposing your hard-earned gains to taxes and early withdrawal penalties. This week I’m giving you an expert breakdown to clarify how the rule works and bust some common misconceptions. You will want to hear this episode if you are interested in... [01:13] Tax-deferred growth and conditions for tax-free distributions [05:39] Taxes...
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4 Best Options To Pay For Long-Term Care, #321
Retire With Ryan
Long-term care coverage is an essential, yet often misunderstood, aspect of retirement planning in the United States. Although many people will require some form of long-term care as they age, most are unprepared for the high costs and limited coverage options available. On the show this week, I’m debunking common myths like the notion that Medicare will fully cover all long-term care costs and taking a deep dive into the four main ways retirees can pay for these expenses. You will want to hear this episode if you are interested in... 00:00 Understanding the options for...
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Are Bonds Still A Good Investment For Your Retirement Portfolio, #320
Retire With Ryan
On the show this week, I’m helping you understand why bond prices have been dropping, what actions investors should take, and whether bonds still have a place in a retirement portfolio. I discuss the different types of bonds and how interest rates impact bond prices. I also dig into the importance of maintaining a diversified portfolio and the role bonds can play in reducing overall volatility during retirement. You will want to hear this episode if you are interested in... [02:03] Types of Bonds and issuers [03:21] Risks of investing in junk bonds [04:39] Why have bond prices...
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Top 5 Reasons Retirees Run Out Of Money, #319
Retire With Ryan
Retirement is often imagined as the reward after decades of hard work—a time for travel, relaxation, and quality time with loved ones. But for many Americans, the anxiety of running out of money casts a long shadow over these golden years. Studies reveal that concerns about outliving savings are more prevalent than fears of dying prematurely. This week we’re discussing the five key reasons retirees run out of money and sharing practical steps you can take to secure your financial future. You will want to hear this episode if you are interested in... [02:16] Even high-income...
info_outlineWhen it comes to planning for retirement, one of the most commonly faced decisions is how to invest for long-term growth and stability. In turbulent times, market volatility often generates renewed debate on whether index funds, or their actively managed counterparts, offer the better path for accumulating wealth. On this episode of the show, I’m unpacking what index funds are, how they stack up against actively managed funds, and what the latest data reveals about performance during both quiet and volatile markets.
You will want to hear this episode if you are interested in...
- [00:00] Understanding index funds and actively managed funds
- [05:55] Stock picking and bond strategies
- [07:21] Comparing index funds to active funds
- [11:44] 2025 market performance and instability
- [13:43] Low probability of selecting an outperforming active fund
- [15:42] Investing in index funds
Understanding Index Funds and Active Management
The conversation focused on clarifying the definitions and roles of both index funds and actively managed funds in a portfolio. Index funds are mutual funds or exchange-traded funds (ETFs) specifically designed to track an index, such as the S&P 500, which comprises the 500 largest companies in the U.S. However, indexes extend well beyond large-cap U.S. companies to include mid-size, small-cap, international, emerging markets, real estate, and various bond markets.
Actively managed funds, in contrast, are overseen by managers aiming to outperform their index benchmarks by selectively choosing investments they believe will generate higher returns. Several points were raised, including that these managers may focus on only a subset of the companies in an index, relying on research, forecasts, and periodic rebalancing in an attempt to add value.
The Cost Factor: Why Fees Matter
Management expenses are an ongoing drag on returns. Index funds typically charge extremely low fees, often around 0.1% annually, because they passively track an index and involve little decision-making. In contrast, actively managed funds average around 1% or more per year, reflecting the higher costs of professional research, trading, and active oversight. This fee gap means that even if an active manager chooses well, they must first clear a substantial hurdle just to keep pace with an index fund.
What the Data Shows About Performance in Volatile Markets
In the volatile year of 2025, only 38% of actively managed funds outperformed their passive benchmarks in the U.S. stock market. For large-cap stocks like those in the S&P 500, the number was even lower—just 30%. International stock managers fared slightly better, with a 48% success rate, and emerging market funds did the best, at 64%.
However, over longer periods, the active management advantage all but disappears. Over 10 years, only 8.1% of large-cap blend active managers beat their benchmarks, with small-cap and international funds performing marginally better, and bond managers seeing a 41% success rate. But for 20-year periods, even those slim advantages deteriorated further.
Should Index Funds Still Be the Core of a Retirement Portfolio?
The data strongly supports favoring index funds for most of a retirement portfolio, especially for stock allocations. Index funds keep costs low, are simple to implement, and historically have delivered better risk-adjusted returns for the vast majority of investors across long time horizons. While some areas, such as certain bond categories or emerging markets, may occasionally offer pockets of relative opportunity for active managers, these successes are rare, short-lived, and hard to identify in advance. For most retirees, sticking primarily with index funds and maintaining a diversified, long-term approach remains the prudent and statistically advantageous strategy, regardless of temporary episodes of market turmoil.
Resources Mentioned
- Retirement Readiness Review
- Subscribe to the Retire with Ryan YouTube Channel
- Download my entire book for FREE
- Morningstar's Active/Passive Barometer Report
Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact