mutual funds

October 6 2014

Mutual Fund Investors Aren’t Invited To The Super Bowl

Maria Alcoke Investment Ideas bull markets, mutual fund advertising, mutual funds

Below is a synopsis of this investment report:

Mutual funds are some of the most aggressive advertisers during bull markets, and they often target major sporting events due to the psychology of being associated with “winners”.
Not only does the SEC permit such advertising practices, they actually allow mutual funds to make their investors pay for their marketing and distribution costs using assets within their funds.
The Investment Committee refuses to pay for mutual fund executives to attend the Super Bowl, which is one of the many reasons that we do not use these products in our investment strategies.

For full access to the investment report titled “Mutual Fund Investors Aren’t Invited To The Super Bowl”, please contact us.

September 29 2014

A Deeper Dive Into Mutual Fund Tax Issues

Maria Alcoke Investment Ideas mutual fund tax issues, mutual funds, tax trap

Below is a synopsis of this investment report:

Mutual funds are riddled with unfavorable tax rules, and their inefficiencies are one of the many reason that the Investment Committee chooses to avoid using them for our strategies.
Two examples of these inefficiencies involve deducting losses and realizing capital gains on trades within mutual funds.
The Investment Committee strongly urges investors to reconsider the use of mutual funds given their propensity to frustrate their holders around tax time every year.

For full access to the investment report titled “A Deeper Dive Into Mutual Fund Tax Issues”, please contact us.

September 22 2014

A Great Strategy For Mutual Funds

Maria Alcoke Investment Ideas mutual funds

Below is a synopsis of this investment report:

Mutual funds served their purpose back in the 1980s and 1990s as effective vehicles to broadly diversify a retail investor’s portfolio, despite their exorbitant fees and rampant tax issues.
The time for these products has passed, and the retail investor community should strongly consider upgrading to the level of service and expertise offered to institutional investors.
The Investment Committee conducted a rather unorthodox analysis of mutual fund performance to conclude a more effective strategy for those who want to profit from the mutual fund business.

For full access to the investment report titled “A Great Strategy For Mutual Funds”, please contact us.

April 3 2013

Are Mutual Funds A Safe Place For People To Have Their Money?

Maria Alcoke Smart Money Blog low risk investments, mutual funds, retirement investing

Here is a recent excerpt from an interview with John Bogle about whether mutual funds are a safe place for people to have their money…

John Bogle: “It is as safe as the stock market, which is to say — to be quite blunt about it — not safe on any short-term basis. But when you look at the long term, look to what investment can I own for a lifetime? We know — as much as we can ever know — that stocks will do better than bonds over half a century, let’s say.”

“If you’re in your 20’s and you’re going to be investing for the next 50 or 60 years, it’s an excellent long-term bet. [But] in any given year? The market can drop 50 percent. I’ve seen now three of those 50 percent drops. They’re all scary. At the bottom, you think they’re going to last forever. But they don’t.”

What is he saying? Is the stock market safe or not safe? What stocks or mutual funds are safer than others? I think that Mr. Bogle is a very smart businessman. So smart that he can say nothing while appearing to say something very insightful (to paraphrase: the stock market is safe as long as you have 50 to 60 years of investing ahead of you).

Are mutual funds safe? If the market can go down 50% in any given year (3 times in his lifetime), then how safe is it? Sure, if you are 20 or 30 then maybe you can ride it out or even take advantage of the lows. But if you are reading this, my guess is that you are somewhere north of 50.

Folks, if you depend on your retirement savings for income now or starting in the next 10 years, can you really afford to have a 50% drop in your account value? Smart investors understand that conservative investing using a balance of safe and low risk investments is the best way to secure their financial future. Combine this strategy with a focus on reducing or eliminating taxes and you have a winning combination.

I believe that this is common sense and so do our clients.

If you agree, please give me a call at 215-968-1755 or contact me by filling out the contact form on this site and I will get back to you.