Legendary Investor Warren Buffett says Index Funds are one of the best investments, what do you think?

"Investing is so scary; I don't understand a thing about the complicated world of finance!"

"I don't have time to manage my investments!"

"Investing is only for the rich!"

These are what we often hear from the regular person on the street who do not have any investing background.

Does that mean then that your retirement should be short-changed?

What if I told you there is a solution, which is simple, low-cost, affordable and hands-free but yet, sufficiently effective to beat the best brains in finance?

Sounds too good to be true?

Well, the catch is that you have to take a long-term view and be consistent.

Back in 2007, legendary investor Warren Buffett famously made a $1 million bet against Protege Partners (a high profile hedge fund manager) that the unmanaged S&P index would outperform hedge funds over the next 10 years.

Ten years on and in 2017, Warren Buffett won.

Buffett's fund choice is the Vanguard 500 Index Fund Admiral Shares, which generated a 7.1% annual compounded return, while the basket of hedge funds his competitor chose returned an average of only 2.2 percent, the Wall Street Journal reports.

Buffett is a firm believer that passive investing can be a good way to boost retirement savings. "Consistently buy an S&P 500 low-cost index fund," he told CNBC's On The Money. "I think it's the thing that makes the most sense practically all of the time."

"The trick is not to pick the right company," Buffett says. "The trick is to essentially buy all the big companies through the S&P 500 and to do it consistently."

If you agree with Warren Buffett's time-tested philosophy, consider including index funds as part of your core investment portfolio to help grow your retirement funds while adding on other actively managed funds into the satellite portion to boost your portfolio performance.

At dollarDEX, we have four index funds from the Lion Global Infinity Series to suit your different investment needs. All you need to do is to use our Fund Finder and filter for index funds under the 'Advanced' tab. These index funds have a lower management fee of 0.475% and is suitable for those who are more cost conscious. In fact the Infinity US500 Stock Index Fund invest directly into the Vanguard S&P 500 Index which is what Warren Buffet has chosen!

Start building your core portfolio with index funds today on dollarDEX and create your free account to embark your no-fees investing journey!