Warren Buffet has pledged $1 million for charity in order to get better investment returns. It is most likely that Warren Buffet will collect the bet later this year.

According to Warren Buffet, there are too many expensive funds that end up shortchanging customers, and his commitment to low cost and simple investments is supported. Warren Buffet believes in bottom-up investing because it has been proven to be affective in the past. Buffet is good at delivering the message that Americans should be saving for retirement and to gat and stay invested for their future. In a current annual shareholder letter, Buffet also shared advise as to the ins and outs of investing.

Read more: Capital Group Board Elects Timothy Armour as Chairman

It’s important for consumers to be cautious of product labeling. Many mutual funds provide poor returns in the long run, mostly because of excessive management fees and ridiculous trading. It has been suggested for far too long that a very safe bet was to go with passive index returns as a means for retirement. Index funds however, will give you absolutely no cushion when the market happens to go down. Information collected from an online survey last year has more than proven that only half of the 1200 investors or more were aware that index funds give them 100 percent exposure of the losses during market downturns.

Nowadays, most of the younger Americans are in charge of their own retirement and need to take certain steps to ensure that they will be prepared for their golden years.

Tim Armour is the chairman and CEO of Capital Group. He is based in Los Angeles. With 32 years of experience as investment leader in Capital Group, one of the biggest investment firm in the world.

Learn more about Tim Armour at http://www.reuters.com/article/us-americanfunds-armour-idUSKCN0HY0EN20141009