Blog - How To Become A Better Investor

Take A Tour

How To Become A Better Investor Newsletter
Sign up for our free weekly newsletter to receive valuable insights and articles about retirement investing -- the MarketRiders way.



Category Archives: Index Funds Versus Mutual Funds


Study Reveals Indexing Wins Again

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 39.2 [...]

Share

Avoiding Mutual Funds Fees and Retire Earlier

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 [...]

Share

An ETF is a Great Investment Choice

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 [...]

Share

Mutual Fund Fees Siphon off 33% – 50% of Your Money Within 10-15 Years

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 [...]

Share

Active Investing by Money Managers Loses in Risk Study

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 [...]

Share

What is Inside Your Mutual Funds Fees?

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 [...]

Share

Stock Picking: In Today, Out Tomorrow — What Is One To Do?

Market timing, a well known term learned in Investing 101, is exciting and can be quite profitable yet stock picking is oftentimes very fickle and given how the tide shifts over time is usually not best for one nearing retirement.  For beginners to retirees that want to get in the game with owning stocks, buying a [...]

Share

If You Are An Index Investor, Where Does Explore Investing Fit In?

In this week’s Forbes column, Rick Ferri asserts that “partial indexing works for Wall Street, not investors”. In this penetrating article, Rick ruthlessly uncovers Wall Street’s agenda is selling indexing for efficient markets while directing clients towards highly priced actively managed mutual funds for “inefficient markets”. As Ferry states, “Welcome to ‘Core and Explore’, also [...]

Share

ETF Stocks: Can you beat SPY? How to benchmark your performance

If you are picking stocks for your own portfolio, then you are competing against all of the smart stock pickers in the world. In fact, when you’re buying or selling, there’s someone on the other side betting against you. While it may be fun, this may not be profitable in that you may end up [...]

Share

Tracking 9 ETF Portfolios – Surprise Winners and Losers So Far in 2008

The famous professors at Yale have proven that asset allocation accounts for 90% of a portfolio’s return and that stock picking and market timing account for less than 10%.   So what a great time to look at how different asset allocations are faring in this market! In 2008 it turns out that asset allocation decisions have [...]

Share