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FWIW:

The decision to start contributing to my employer's 403b about 10 years ago is one of the few
Foolish decisions I've made in my adult life.

I have been watching my retirement account over the past few weeks and have noticed something
interesting:

We invest through Scudder and I can go to the Scudder web site and see how all their funds are
doing--the S&P 500 is the *only stock fund that is still performing in positive numbers. (*Except
the European fund, which has taken a nose dive over the past few weeks, and I don't expect to see
anything different. If it keeps on diving the way it has been I expect to see major losses there also).

I don't check them to really see how my portfolio is doing--in it for the long run, don't worry about
it, but I wanted to see if the Brothers Gardner were right in their teachings. Well.....................

Hail to the Gardner's. I'm impressed!

Jennifer
(who will post this on LBYM also)
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Greetings, Jennifer, and welcome. You wrote:

The decision to start contributing to my employer's 403b about 10 years ago is one of the few
Foolish decisions I've made in my adult life.

I have been watching my retirement account over the past few weeks and have noticed something
interesting:

We invest through Scudder and I can go to the Scudder web site and see how all their funds are
doing--the S&P 500 is the *only stock fund that is still performing in positive numbers. (*Except
the European fund, which has taken a nose dive over the past few weeks, and I don't expect to see
anything different. If it keeps on diving the way it has been I expect to see major losses there also).

I don't check them to really see how my portfolio is doing--in it for the long run, don't worry about
it, but I wanted to see if the Brothers Gardner were right in their teachings. Well.....................

Hail to the Gardner's. I'm impressed!


While I believe the index fund will outperform managed funds over the long haul, a few weeks is hardly a fair test. A better verification is to look at your funds' long-term records against the Vanguard 500, which you can do on-line at www.morningstar.com . Look at the 5-, 10-, and 20-year records of all of them to be sure. My guess is you'll find the index fund wins. Few managed funds beat it over the long haul.

Regards….Pixy
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<"While I believe the index fund will outperform managed funds over the long haul, a few weeks is
hardly a fair test. A better verification is to look at your funds' long-term records against the
Vanguard 500, which you can do on-line at www.morningstar.com . Look at the 5-, 10-, and
20-year records of all of them to be sure. My guess is you'll find the index fund wins. Few managed
funds beat it over the long haul.

Regards….Pixy">
------------------------------------------------------
Pixy,

Thanks for the feedback. I agree with you 100%--but the 5oo index fund at Scudder has only been around for about 1 year. Although since it is an index fund, could I check it against another company's index fund? Do all index funds work about the same way? Or due to the different amounts of monies invested by the different mutual fund co.'s would it be too much of a difference?

I do hear what you're saying--but it is interesting to see what is happening to the fund I am contributing to in light of what is happening in the markets. I know more time is needed for a significant comparison.

Jennifer
(read your profile and interview--loved it! You're a very funny person! By the way, where did 'PIXY' come from?)
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Jennifer, you asked:

Thanks for the feedback. I agree with you 100%--but the 5oo index fund at Scudder has only been around for about 1 year. Although since it is an index fund, could I check it against another company's index fund? Do all index funds work about the same way? Or due to the different amounts of monies invested by the different mutual fund co.'s would it be too much of a difference?

I do hear what you're saying--but it is interesting to see what is happening to the fund I am contributing to in light of what is happening in the markets. I know more time is needed for a significant comparison.

Jennifer
(read your profile and interview--loved it! You're a very funny person! By the way, where did 'PIXY' come from?)


By and large all S&P 500 index funds work the same way. The only differences lie in how much cash they keep uninvested to allow for fund redemptions and how much they charge in expenses. Those two items account for most of the difference in returns, both with the index itself and other index funds. The less cash held and the less expenses they charge, the closer they will be to the index.

"Pixy" is an alternate spelling of and more masculine-looking version of "pixie." A pixie is defined as a fairy (those with weird senses of humor better watch it!) or sprite, especially a mischievous one. I thought it kinda fit my temperament. Mrs. Pixy, though, thought it should be "Grinch" or "Crosspatch." That woman's always picking on me. One of these days I'm gonna let her manage her own money. I bet she can't lose as much as I can in twice the time.

Regards….Pixy
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