No. of Recommendations: 0
Just when I think I know what I know, someone comes along to ruin it.

First; all of these facts[?] are taken from a book
by Ric Edelman, titled
"Discover the Wealth Within You". He admits that he is a advocate of mutual funds, and makes a good share of his income from promoting them. I don't believe this makes him right or wrong, but is certianly enough to wonder about his objectivety.

Index funds in fact buy high and sell low whenever they replace a stock in the index. They rid themselves of the slackards {your outa here} and replace with a stock that has shown to be the new rising star. He continues to assert that the replacement stock will then have a above average drop over the next year as it has peaked out.

Taxes on a Index fund are only deferred {at best} yearly and will have a much larger tax due when sold, as opposed to a regular fund that one would be taxed yearly. Also, in a down market shares inside the index would have to be sold for those leaving the fund. - I don't know what he believes the difference is here as
I thought that was what all funds do.

I understand that others have spokan to the fact that some indexes such as the S&P 500 may work better as a Index fund than say a small capital growth since as a general rule there would be less turnover.

A good part of the book addresses the question of retirement as a question of time as much as money. He contends that {my words} many are in their comfort zone while working and without the struture we would then have to set our own goals and make our own decisions as to the route to get there. By doing this we are missing out on doing what we would enjoy doing instead of what we have to.

No doubt all of these questions/issues have been addressed numerous time but I would appreciate any feedback.

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