Do you know what an Index Fund is or does?  Index funds are available as standalone investment funds, with Equity Index Annuities where you cannot lose principal and Variable Life and Annuity policies.  Article by Jason Zweig; ‘The Intelligent Investor” Wall Street Journal 11/27/2010), titled “Are Index Funds on Track to Become Even Harder to Beat?” is well worth reading.

Mr. Sweig states “index funds continue to make investing cheaper and easier than ever. For investors in these low-cost, autopilot portfolios that dispense with stock pickers and passively replicate the holdings of a broad basket of stocks or bonds, the best is yet to come.” 

The article points out “Over the past decade, Vanguard Total Stock Market Index fund has gained an annual average of just 1.79%....  ...according to Morningstar, this autopilot fund outperformed two-thirds of all other stock funds, including those run by managers trying to beat the market.  Another point, “the Dow Jones U.S. Total Stock Market Index is up 10.3% thus far this year.” (December 2010) Has Index funds had their problems, they have but mostly or completely due to regulation, changes are taking place starting January which may resolve this.  Hundreds of Index funds are available through many sources and set to be available in 401(k) plans as investment options or 401(k) Equity Index Annuities in 2011.