The entire personal finance blogosphere is in love with index funds, and I’m here to tell you why they’re bad for your investment portfolio. This should go over well. Black sheep anyone? I realize this thesis will not be a popular one, but from my perspective as an active investor and stock picker, I’m here […]
Mutual funds are professionally managed funds that have been pooled together from a big number of people. Some are managed by investment firms and others may be managed by investment subsidiaries of your banks. You may not be aware of it, but your bank will probably have some form of investment product into which you can enter. Mutual funds are appealing because of their higher returns as compared to regular savings account and certificate of deposits. You also don’t see the money in your savings account; therefore, you cannot withdraw it because you want to buy that bag that you saw in the mall.
The debate over choosing actively managed mutual funds versus passively managed funds (via index funds) is nothing new, and in all likelihood, will keep on going for hundreds of years. While some will say it is entirely possible to outperform the market, index fund proponents will argue that it’s impossible to do so over a […]
Vanguard, for those who did not know, has a few actively managed mutual funds, tax advantaged funds, and even a few sector specific funds. All have varying fees/expense ratios, a few of them have very high investment minimums ($250,000 plus), and yes, even a few are closed off to new investors. I realize that speaking […]
By now, everyone has heard about the now infamous Bernie Madoff and his (alleged) $50 Billion Ponzi scheme. As if the stock market meltdown wasn’t bad enough with investors taking 40% to 50% losses in their portfolio, we have this guy to thank for adding one last dastardly deed. Investor confidence in Wall Street couldn’t […]
With smoke from the Lehman Brothers bankruptcy still lingering, most everyday investors like you and I are in a state of hypersensitivity regarding their investments and retirement accounts. Rightly so, because anyone who held an index fund, or any other investment for that matter, probably took a nasty hit after yesterdays 500 point drop in […]