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09-22-2008, 10:40 AM
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#121
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
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Yes, I disagree with FD. So what? I must agree with everything he types because you think I should? I've already posted the fund you selected (or 2b selected, whoever) and showed that over the long term, it did outperform the S&P. However, that's not good enough for you. I've gotten some of my info from my local newspaper, perhaps they're in cahoots with American funds.
As to who's posting what, you're right, I rarely read the names, I usually base my responses on each individual post, that way, unlike you I don't have preconceived opinions. Nonetheless, the thread was started by comparing a C share, just as I said.
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09-22-2008, 10:43 AM
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#122
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
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Quote:
Originally Posted by 2B
No one is forcing me to participate. The unfortunate choice of participating in high fee funds is better than not taking advantage of the tax deferral.
Why not give people the choice of low cost index funds? Maybe the high fee fund companies give "free" 401k plans to the employers or other kickbacks. I guess it doesn't matter since employers don't have a fudiciary responsibility.... or do they?
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Yes, they have a fiduciary responsibility. However, it is limited to their not overcharging you for funds, (American funds have some of the lowest fees around), and making sure you have ample choices. I'm assuming your company is not in the employee investment business so their main concern is finding a provider who sends out statements regularly, can handle questions from employees, and generally isn't a pain to deal with. I would hope you'd rather have your company focusing on profits than adding additional funds (which may incur additional fees to the 401k btw).
And no, the employer is not getting a kickback, although some TPA's charge less than others.
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09-22-2008, 10:56 AM
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#123
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Recycles dryer sheets
Join Date: Jul 2008
Location: ENE MO - near STL
Posts: 424
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Quote:
Originally Posted by 2B
That's true but the cost above NAV is equivalent to a load. The load is not that large but I've seen the ETF 0.5% above its index at the close. I have no way of knowing what's going on during the day.
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Oh, I see. You're talking about the premium/discount from the NAV, and pointing out that they usually (always?) run at a premium. But that would be a wash if you get that premium at the sale too, no?
Of course who knows what that price will be when you eventually sell years down the road, but I think that over a long period of time that the lower ER would overcome that premium even if you didn't get it on the sale.
Interesting point to consider.
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09-22-2008, 11:04 AM
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#124
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by cute fuzzy bunny
And the two financial guys pitching the funds dont even agree. One says the funds beat the indexes, that anything else presented is wrong and full of lies, while not offering any alternative data, and the other says the funds dont beat the indexes, arent intended to, and there arent any comparable indexes.
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I'm not "pitching them" to you, or anyone else for that matter....... I think we need an ETF thread..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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09-22-2008, 11:07 AM
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#125
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Okay, I'm getting the picture. Not only do the funds not beat the index or have a comparable index, but you dont want to sell them to anyone either?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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09-22-2008, 11:14 AM
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#126
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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09-22-2008, 11:16 AM
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#127
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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This from the guy who had "My american funds can beat up your vanguard funds" as his sig for a month or so?
Will you next be claiming to have never heard of american funds?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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09-22-2008, 11:29 AM
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#128
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
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So, a couple of professional people come on here at no cost, but merely to offer sound advice, and then people like cfb want to run them off, because they have nothing better to do with their time. Go figure.
I'd think those who appreciate the efforts would tell cfb to chill out, or at the very least let a moderator know about the harrassment. I know that in every instance, no matter what the subject matter, I like getting free opinions from professionals. Just wish I could have this weekend with an electrician.
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09-22-2008, 11:34 AM
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#129
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by cute fuzzy bunny
This from the guy who had "My american funds can beat up your vanguard funds" as his sig for a month or so?
Will you next be claiming to have never heard of american funds?
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What's an "American Fund"?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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09-22-2008, 11:58 AM
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#130
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Dick Cheney? Is that you?
Hey Art, the only good advice you've offered up is for people to put you on their ignore list.
As far as people lining up to tell me to chill out or moderators running to your assistance...well...good luck with that.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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09-22-2008, 12:03 PM
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#131
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Leave me alone, I'm busy clinging to my "guns and religion"........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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09-22-2008, 01:02 PM
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#132
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Hey FD, what about your lipstick
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09-22-2008, 01:24 PM
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#133
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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My wife stole it, she said it's the wrong shade for my eyes.......
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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09-22-2008, 02:24 PM
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#134
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Quote:
Originally Posted by Art G
So, a couple of professional people come on here at no cost, but merely to offer sound advice, and then people like cfb want to run them off, because they have nothing better to do with their time. Go figure.
I'd think those who appreciate the efforts would tell cfb to chill out, or at the very least let a moderator know about the harrassment. I know that in every instance, no matter what the subject matter, I like getting free opinions from professionals. Just wish I could have this weekend with an electrician.
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Unfortunately, I haven't heard much in the way of professional advice. Everything has been sales hype. Requests for significant data has never received a complete/partial response. There is a basic human desire to think that some expert can do better than the market indexes but repeated, independent studies say it doesn't happen. I would love to change my mind when the facts change.
I hadn't had you among the elites on my ignore list but I think you've earned a spot.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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09-22-2008, 02:28 PM
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#135
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Quote:
Originally Posted by Gardnr
Oh, I see. You're talking about the premium/discount from the NAV, and pointing out that they usually (always?) run at a premium. But that would be a wash if you get that premium at the sale too, no?
Of course who knows what that price will be when you eventually sell years down the road, but I think that over a long period of time that the lower ER would overcome that premium even if you didn't get it on the sale.
Interesting point to consider.
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I've seen them run at a premium and discout. You can't depend on being able to buy at a discount and sell at a premium. If you dollar cost average in and out you can probably achieve a near neutral premium/discount. You might be able to absorb a phantom load charge by holding many years but some of the ETFs have pretty nasty management costs. Don't equate ETFs with the 0.09% charged by SPY. Homework is necessary here like everything else.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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09-22-2008, 02:43 PM
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#136
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
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I guess I should join the list of saying I'm putting everyone on ignore also.
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09-22-2008, 03:06 PM
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#137
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Thinks s/he gets paid by the post
Join Date: Sep 2007
Posts: 1,214
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Quote:
Originally Posted by Art G
Here's the point, in an up market people claim, "sure they've beat the index lately, but what about long term?". So I post long term ACTUAL numbers that have beat the S&P index even going back to the 70's, but that's not good enough.
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In fact, that is *not* good enough. The overall 5 or 10 or 30 year returns are just eye-candy to fool the rubes. One exceptional good or bad year will dominate the numbers.
The figures that are valid and useful are the CAGR (compound annual growth rate), the STDEV (standard deviation) and the MAX-DD (maximum drawdown). Including the Sharpe Ratio would be good, too.
Only with these statistics can you talk about "risk-adjusted return". You claim that the American funds have a better RAR than the various index funds, but provide no data to back this up.
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09-22-2008, 03:24 PM
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#138
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Quote:
Originally Posted by rayvt
In fact, that is *not* good enough. The overall 5 or 10 or 30 year returns are just eye-candy to foll the rubes. One exceptional good or bad year will dominate the numbers.
The figures that are valid and useful are the CAGR (compound annual growth rate), the STDEV (standard deviation) and the MAX-DD (maximum drawdown). Including the Sharpe Ratio would be good, too.
Only with these statistics can you talk about "risk-adjusted return". You claim that the American funds have a better RAR than the various index funds, but provide no data to back this up.
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You're tougher than CFB.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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09-22-2008, 03:37 PM
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#139
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Thinks s/he gets paid by the post
Join Date: Sep 2007
Posts: 1,214
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Not really. Just interested in seeing *real* data instead of furious hand-waving. There are lots of papers & articles readily available on the web that talk about and compare investment strategies---and they invariably include these stats. And they very rarely include 3/5/10/15 year charts, except perhaps as a passing aside.
The people who run Funds are not stupid. They know darned good and well about the statistics I mentioned. And I'm pretty sure that they know their own numbers.
The fact that they don't says to me that the actual numbers don't compare favorably with the simple index strategies.
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09-22-2008, 04:52 PM
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#140
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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Quote:
Originally Posted by dwk
Haven't been on the board for sometime due to some significant life challenges. I would describe my risk/reward tolerance as moderate. Most of my retirement accounts are in my 401K and index funds. I'm 54 and was looking to retire in the next 3-5 years, but unless the market changes for the better, I'm going to change my target to 8 years.
My confidence in managing my finances has been bruised over the last 12 months. My total retirement portfolio has been on a steady decline since 3rd qtr 2007 and is down 12% over that period of time. I have some of my retirement funds with Smith Barney and met with my adviser recently.
My SB adviser and I discussed their TRAK/Wrap funds. We discussed the pros and cons. I'm considering moving 25% of my portfolio, the expense ratio is 1.5% total. My adviser and I have a similar attitude towards investing. He told me the TRAK accounts have been available for several years -- but he wanted to have some history with them before recommending them to clients.
Any comments greatly appreciated.
Thanks!!!
dwk
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What is the yield of your portfolio and why do you even care about performance?
The Norwegian widow buys high sells low and takes her file cabinet of dividends to the bank. BTW - two drawers, one each in two file cabinets - haven't moved em all to Vanguard broker yet.
Being a hard core Boglehead - why don't you hold an asset mix that will get the job done for your retirement - without paying a lot for your muffler/er costs to someone else.
15% Norwegian widow stocks
85% Target Retirement 2015
age 65, 15th yr of ER - took me forty years of investing/reading books/listening to brokers/etc - I had a real high class(read expensive) education.
heh heh heh - and if you don't like widows and orphans stocks Psst - Wellesley. Hope the Pat's do ok sans Brady.
Per Bogle - you get what you don't pay for.
Hey - looks like I missed a fun thread being off for nine days to Nags Head.
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