Quote:
Originally Posted by lukeh
Look up these two managed funds (PYSCX and PVSCX) and compare them to a low cost Vanguard S & P index ETF (VOOV) over the past 5 years. Why wouldn't I pick the managed fund? Sometimes the best costs more. What do I care as long as I end up with more in my pocket?
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What you care depends on what your needs are. If my returns were based on last year's performance I'd still be all over managed funds. But you can't foresee which of the hundreds of funds are going to outperform the index. That only happens in hindsight.
As it is, I have to go with balancing my needs with realistic expectations.
Forty years ago when I had a long recovery horizon I was 80% in managed, aggressive funds. Most years I hit more winners than losers, some years I didn't. Now that my recovery horizon is right in front of me, I can't afford to pick a loser. Everyone's needs are different. Choosing the best for you is a complex calculation.