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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25223  
Subject: Re: Roth 401K-brokers that allow individual stoc Date: 8/11/2013 4:54 PM
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The problem I have with any kind of fund it that someone else picked the stocks it contains. There are too many closed door deals that go on than I wouldn't know about, like there were pay offs to get stocks included in certain funds, etc...

The concerns you have would apply mostly to managed funds. You need to learn about index funds. They are based on stocks contained in specific stock (or bond) indices, like the S&P 500 or the Russell 2000, for broad markets, or things like Health Care or Consumer Products, if you want to invest in specific sectors. Here's some research you might want to read: https://personal.vanguard.com/pdf/s296.pdf And realize that you can also buy ETF based on indexes, too.

There is a Motley Fool article called something like "How to make a million in the stock market" that says basically the same thing.

You might want to check the date on that article and see if it was dated before TMF started their own managed mutual funds. http://www.foolfunds.com/funds/index.aspx So if you really think that TMF is still espousing a 'no funds' philosophy, they seem to be talking out of both sides of their mouth. Are you sure you want to believe that?

Starting this so late in life, I need aggressive companies that want to be sure their stockholders don't dump stocks due to poor performance. I don't just study stock charts. I study the companies, employee moral, whoever is in the driver's seat, etc...

Aggressive companies that want to be sure their stockholders don't dump their stocks due to poor performance have an incentive to manipulate their earnings. It works well, until it doesn't. Enron, WorldCom, HealthSouth, MF Global..... If you really think that with 2 hours a day is enough to discover those types of issues with only publicly available information, I wish you luck.

I would argue that starting so late in life, you cannot realistically make up for the time that you've already lost, and to try to do so is to engage in gambling. You actually need to be more careful of the investments you make so that you protect the principal you have managed to put away. Doubling down with the small amount of principal that you have may pay off. But like any gambling, in order to get the big payoff you are looking for, there is a lot of risk of losing it all. And with only 2 hours a day of perusing publicly available information, the odds are not in your favor.

AJ
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