Jeopardy, Double Jeopardy and Double Taxation!

Bear with me while I tie a few things together… The game show “Jeopardy” has been around since the 1960’s. It wasn’t until I was much older that I began to appreciate the show for what it is and what it isn’t. I am amazed at the amount of obscure trivia that the contestants knew Read more about Jeopardy, Double Jeopardy and Double Taxation![…]

Why you never have, nor ever will own the S&P 500 or any other Index for that matter!

Virtually every person that I meet with owns a S&P 500 mutual fund or ETF. And most likely they own several other indexes. The problem is, they don’t actually own these indexes. You see, you cannot actually own them, not really. The reason is, is that there is only one S&P 500, one Russel 1000, Read more about Why you never have, nor ever will own the S&P 500 or any other Index for that matter![…]

Mutual Funds Exposed! (Part 6 of 6) Cash in a Mutual Fund is NOT King!

On average fund managers have between 3% and 7% of cash on hand for buying opportunities and redemptions. Let me ask you – what is the ROR of the cash in your bank account? 0%. This is dead money, because cash earns no return. Essentially, buy and hold investors are subsidizing other investors’ liquidity needs. Hence mutual Read more about Mutual Funds Exposed! (Part 6 of 6) Cash in a Mutual Fund is NOT King![…]

Mutual Funds Exposed! (Part 5 of 6 – Great Managers Don’t Stay)

If a star money manager leaves what ramifications does that have for the investors that stay? How many of you have ever heard of Bill Gross?  Bill Gross helped build PIMCO into a $2 Trillion firm. Bill left PIMCO to join Janus Funds in 2014. if you own Pimco during this time, you most likely Read more about Mutual Funds Exposed! (Part 5 of 6 – Great Managers Don’t Stay)[…]

Mutual Funds Exposed! (Reason 4 of 6 – Mutual Funds Lack Transparency)

A great retirement portfolio owns precise measures of specific investment types, depending on your age and personal tolerance for the ups and downs of the market. But what if the mutual funds you buy do not hold the investments you think they do? This is known as “style drift” in the finance world, the more Read more about Mutual Funds Exposed! (Reason 4 of 6 – Mutual Funds Lack Transparency)[…]

Mutual Funds Exposed! (Reason 3 of 6 – Most Mutual Funds Under Perform the Market)

One would think that because mutual funds are managed money, that they might outperform their benchmark. Or, just by chance you’d think that half the funds will outperform and half will under perform. For the 12-month period ending December 31, 2016: -60 percent of large-cap mutual fund managers underperformed their benchmarks. -58 percent of mid-cap mutual Read more about Mutual Funds Exposed! (Reason 3 of 6 – Most Mutual Funds Under Perform the Market)[…]

Mutual Funds Exposed! (Part 2 of 6 – Undisclosed & Hidden Costs)

The mutual fund industry sells performance but does not talk about cost. If you are invested in a mutual fund it may be up – but how much were you up? There are fees and transaction costs that you never see. In many cases that 8% ROR is cut to 5% or less! What counts is Read more about Mutual Funds Exposed! (Part 2 of 6 – Undisclosed & Hidden Costs)[…]

Mutual Funds Exposed (Part 1 of 6)

At one time, mutual funds were useful investments. It used to be difficult and expensive for individuals to own many stocks and create their own portfolio to help get the benefit of diversification.  So, mutual funds probably provided, at one time, what might have been one of the best available investment alternatives. However, to obtain Read more about Mutual Funds Exposed (Part 1 of 6)[…]

Perspective is Everything… So I want you to try Table Dancing!

If you have lived in your home for any length of time, you can probably close your eyes and envision where each room is in the house as well as each piece of furniture. The next time that you are home, I want for you to walk into your kitchen and take a look around, Read more about Perspective is Everything… So I want you to try Table Dancing![…]

Christmas is coming the goose is getting fat…

It is Christmas time and you have probably been hustling and bustling about buying presents. This involves going to many different stores to find the “right” present for each person. This is a common scenario for Christmas and it is also a common theme with most peoples financial lives. You make many different financial decisions Read more about Christmas is coming the goose is getting fat…[…]