|
|
|
|
| Author |
|
|
Registered
|
Anybody read Millionaire Teacher....
by Andrew Hallam? In a nutshell it advocates buying ETF's as opposed to mutual funds and individual stocks. It takes a run at mutual funds for their high management fees, tax inefficiency and high commissions.
As each individual cornerstone of say a bond etf, stock market index etc diminishes or increases then the amount in each is adjusted. The thinking here is that it is impossible to time the market and that is why mutual funds do not do as well as the market averages. Canada has some of the highest mutual fund management fees in the world. For example 2% a year can take a big chunk of your gains. What do you think? Guy |
||
03-20-2015, 09:22 AM
|
|
|
Back in the saddle again
Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 55,874
|
I think mutual funds are fine as long as you stick with index funds which are MUCH lower cost than an actively managed mutual fund. You can also get an ETF that does exactly the same thing, tracks an index. I have no doubt that there is a cost involved with an ETF. Someone is getting paid somehow, but I haven't looked into how they get paid.
Check this out. The Ultimate Buy and Hold Strategy 2014 - Paul Merriman He definitely steers you away from actively managed mutual funds. If you own a fund that makes a little more than market, but the fees are 2% so you end up making less than market overall, what's the point right?
__________________
Steve '08 Boxster RS60 Spyder #0099/1960 - never named a car before, but this is Charlotte. '88 targa  SOLD 2004 - gone but not forgotten
|
||
|
03-20-2015, 02:49 PM
|
|
Lexus RX350
