For those that have taken to indexing over the last several years, we have John Bogle, pioneer of indexing and founder of The Vanguard Group and Vanguard index funds, to thank. A recent study by Standard & Poor’s revealed that “actively managed mutual funds beat their benchmark index in 2009. No surprise here: Just [...]
Category Archives: Index Funds Versus Mutual Funds
Avoiding Mutual Funds Fees and Retire Earlier
Tuesday, March 9, 2010
The more you read, the more you will uncover the ongoing discussion of how mutual funds are being challenged to reveal the true costs of investing in them. As an article I recently ran across by Ruthie Ackerman demonstrates, “Ask a broker why 12b-1 fees exist and you’ll get a variety of answers. The fees [...]
An ETF is a Great Investment Choice
Saturday, February 27, 2010
When evaluating your investment choices and trying to understand ‘what is an ETF?’ it is in your best interest to read a recent article in USAToday ‘Is an ETF the right investment for you? Look beyond the hype’that defines exchange traded funds and warns investors on types of ETFs to steer clear of. For those [...]
Mutual Fund Fees Siphon off 33% – 50% of Your Money Within 10-15 Years
Tuesday, February 16, 2010
Perhaps the typical 2% management fees charged by mutual funds and financial advisers don’t look too damaging at first glance-especially if you believe the managers will deliver on their market beating promises. But because of the Law of Compounding, taxes and fees paid to Wall Street to “beat the market” will compound over time and [...]
Active Investing by Money Managers Loses in Risk Study
Friday, January 8, 2010
Sam Mamudi of the Wall Street Journal deservingly poked money managers in the eye with his recent report on how such mangers underperformed indexes in both real and risk adjusted returns as revealed by a rigorous Morningstar study on the subject.
As Mamundi states, “While it has been established that most actively managed mutual funds lag [...]
What is Inside Your Mutual Funds Fees?
Friday, January 8, 2010
Be certain to read the fine print when signing up to purchase mutual funds as Wall Street scams never fail to surprize me. A recent MSN money article ‘Is Your Mutual Fund Worth Its Fees’ reveals a shocking truth – many active money managers are simply “closet indexers” — wow, actively managed index mutual funds. These managers charge a [...]
