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CBSMarketwatch columnist Paul Farrell highlighted a study I did comparing excessive fees and commissions to what retirees are likely to be paying in Federal income taxes when they retire.

http://cbs.marketwatch.com/news/story.asp?guid=%7BAFB0EE2E%2DFDB0%2D477D%2DBA4B%2D1E6AC16D59F5%7D&siteid=mktw

intercst
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intercst

Congratulations!

Excellent piece of work on your part.

I agree wholeheartedly with your positions as stated in the MarketWatch article. The fees these fund managers and advisors collect for (usually) so little (if any) value-added are ludicrous.

The good advisors are worth their weight in gold, but there are far fewer good ones than the industry would have you believe.

PosFCF
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intercst...

Thanks for your work and for the link to the Marketwatch piece. Might I suggest that you post this link on the investing beginners and index funds boards as well.

Thanks again,
Bill
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intercst:

Good post!

Buy cheap funds and manage your own portfolio.

Amen.

As I have posted before, I have a self-directed IRA and I pick and choose my mutual funds and/or individual stocks. Within my Fidelity family, I can switch among a LOT of funds free and buy or sell stocks for $14.95/trade. I'm up substantially better on my OWN buys/sells this year than my funds, by the way, even after paying my commissions in there.

However, a caveat here: I've been "playing" this game for several years, and have been bitten enough along the way, before using my IRA, to have learned a few things. Self-directing an IRA is NOT for someone who just decides to jump in and start hammering away! He or she can lose big time! (And, unlike trading outside your IRA, you do NOT get to deduct losses in your IRA on your income tax.)

Vermonter
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RetiredVermonter writes,

As I have posted before, I have a self-directed IRA and I pick and choose my mutual funds and/or individual stocks. Within my Fidelity family, I can switch among a LOT of funds free and buy or sell stocks for $14.95/trade. I'm up substantially better on my OWN buys/sells this year than my funds, by the way, even after paying my commissions in there.

However, a caveat here: I've been "playing" this game for several years, and have been bitten enough along the way, before using my IRA, to have learned a few things. Self-directing an IRA is NOT for someone who just decides to jump in and start hammering away! He or she can lose big time! (And, unlike trading outside your IRA, you do NOT get to deduct losses in your IRA on your income tax.)


I agree. While I don't own any mutual funds and hold a mix of individual stocks in my retirement portfolio, most people probably shouldn't. No more than 20% of the people who hold individual stocks beat the S&P500. Most investors would be better served by buying a low-fee index fund and leaving it at that.

intercst

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intercst:

Exactly. My god, I just saw an item about someone who lost his HOME playing the market!!!! Dear God..... That is so sad! But it's no worse than had he done that playing the horses or gambling elsewhere.

My guide is to be diversified -- always. I sometimes wish I had bought MORE of some stock, down the road, when my initial DD had suggested it was VERY good, but a profit is a profit, so I console myself with whatever I made! <s>

Do you think October will bring us a market dump? It often has in the past! I'm kind of tip-toeing around this month.....

Vermonter

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