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10 tips for creating wealth in the stock market
10 tips for creating wealth from the stock market: 1. Do not spread your money too thin. My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting...
It’s Stocks, Not Markets, that Bring Investment Success
It’s Stocks, Not Markets, that Bring Investment Success by Gabriel Nijmeh If you are fairly new to investing and looking for some guidance or if you are seasoned investor, let me introduce you to NAIC. National Association of Investors Corporation...
Organizing Your Finances: - Show Me MY Money: What You're Worth or * net * Worth
Organizing Your Finances: - Show Me MY Money: What You're Worth or * net * Worth by: Janet L. Hall Benjamin Franklin once said, * Time is money *. I think he wanted one to add up how much time they spent on a particular task or job and how much...
THE BIG SECRET THE MUTUAL FUNDS DON’T WANT YOU TO KNOW: INDEXING!
Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Smart financial...
Using an LLC to Protect Your Wealth
Bulletproof" Your Wealth with Family Limited Partnerships and LLC's A limited partnership is a partnership that has at least one limited partner and one general partner. Most states require the filing of a certificate with the state in order to be...
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MUTUAL FUND STUPIDITY
THE ALCHEMIST by AL THOMAS MUTUAL FUND STUPIDITY For years the mutual fund industry has been going great guns taking peoples' money and for the most part doing a very lousy job of making a good return for the investor. The reason I say that is that 80% of them cannot meet the results of the Standard & Poor’s 500 Index. The S&P 500 is the most important 500 stocks of the New York Stock Exchange with a few others thrown in. If you buy any fund that is not composed of this index you are relying upon the fund manger to be able to weed out the poor stocks and buy the best ones. After all he is a “professional” and should know more than a monkey with a dart. Having been an exchange member and floor trader I consider it rather easy to go thru the charts of 500 stocks to eliminate the weakest 200 or 300. There are even services that categorize all the NYSE stocks in 5 categories from best to worst if he doesn’t want to do the work himself yet the largest majority of managers can’t seem to make an average amount of money. By average I mean beat the average performance of all the stocks in the S&P500 Index. When you go to the hospital do you want an average doctor operating on you? Mutual fund managers are financial doctors only they are operating on your wallet. You sure don’t want your money with Mr. Average. Funds are luring you to give them money because they have a lower expense ratio, a famous manager,a specialized category, a socially responsible portfolio or some other nonsense. Why do I say nonsense? Because it doesn’t make any difference which fund you are buying as long as it is outperforming all the others. There is one sure way to increase your
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return and that is not to pay commission. That is called a “load” in the industry and it might not show when you buy it, but be charged when you sell. No load funds do as well and better than load funds. Now many funds are adding redemption fees. It is an excess charge of a flat dollar amount to as much as 2% of your sale if you sell before a certain period of time. If their fund is declining they don’t want you to take your money out so they put this additional charge as a way of keeping you in. There is a new group of mutual funds that is called Exchange Traded Funds. There are hundreds of them and they are becoming the bane of the traditional mutual funds. These trade like stocks, can be bought or sold during the day with permanent stop loss orders in place. The commission charge at most discount brokers is $15 or less. Their expense ratio runs close to zero so you also save money there. A win, win, win for the investor. Mutual funds will discourage investors from buying these only because they don’t want to lose your account. There are many sources of information about ETFs and the easiest is www.google.com . Just type in ETF and you will be inundated with all you need to know. Unless mutual funds stop chasing customers away with high commissions, redemption fees and poor performance the ETFs are going to take a large portion of the investor funds.
About the Author
F*R*E*E investment letter www.mutualfundmagic.com Author of best seller "IF IT DOESN'T GO UP, DON'T BUY IT!" Never lose money in the market. Copyright 2004 Albert W. Thomas All rights reserved. Former 17-year exchange member, floor trader and brokerage company owner.
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