Join Early Retirement Today
Thread Tools Display Modes
Efficient Retirement Investing
Old 03-07-2008, 02:25 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,667
Efficient Retirement Investing

This short article has some thought-provoking items in it. We DIY investors can really waste a lot of $ if we do not pay attention to the little things.

According to a 2007 study by Lipper, taxable mutual fund investors surrendered more than $20 billion to Uncle Sam in 2006. And over the past 10 years they lost 17% to 44% of their load-adjusted returns to taxes each year.
Trading costs, the major internal expense, can be estimated by a fund's annual turnover. Turnover of 100% per year results in additional costs of about 1.0%.
Market impact costs are low in funds holding large liquid stocks, but the cost can rise to over 1.0% per year in small-cap funds with large assets, according to Rick Ferri, an advisor and financial author.
More Efficient Investing In Retirement - Features
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-07-2008, 02:41 PM   #2
Thinks s/he gets paid by the post
DblDoc's Avatar
Join Date: Aug 2007
Posts: 1,224
From "John Bogle on Investing..."

Average mutual fund expenses 1984-1999

Sales commission: 0.5% (annualized)
Cash drag: 0.6% - money not invested in the market
Transaction costs: 0.7%
Expense ratio: 1.2%
Tax: 2.7% !!!!

Total reduction in return: 5.7%
Reduction in return of the Wilshire 5000 Index fund same period: 1.1%

Yes, costs matter (alot). No, an active manager cannot consistently make that up despite what the financial porn press may claim otherwise.

DblDoc is offline   Reply With Quote
Old 03-07-2008, 03:22 PM   #3
Thinks s/he gets paid by the post
Join Date: Jun 2002
Posts: 1,631
Originally Posted by mickeyd View Post
Looks like a good web site - hadn't run across it before but, as a comitted indexer I'm interested in reading more.
friar1610 is offline   Reply With Quote
Old 03-07-2008, 04:29 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
IMHO Indexing is the way to go. Unfortunately I have some money in active funds because 401k has limited options.
chinaco is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Pre Retirement Investing DoubleDown FIRE and Money 2 05-07-2007 11:09 AM
Four Pillars of Investing - Efficient Market Theory!?!? Running_Man FIRE and Money 54 04-04-2007 10:41 PM
Pre-retirement investing rw86347 FIRE and Money 1 10-19-2006 12:54 PM
Investing just prior to Retirement minimalist FIRE and Money 6 03-04-2006 04:05 PM

» Quick Links

All times are GMT -6. The time now is 08:12 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.