Comments on: Index Fund Investors Earn More From Investments http://www.consumerismcommentary.com/index-fund-investors-earn-more-from-investments/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 03:52:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: fessormojo http://www.consumerismcommentary.com/index-fund-investors-earn-more-from-investments/comment-page-1/#comment-131372 fessormojo Fri, 04 Jan 2008 22:27:52 +0000 http://www.consumerismcommentary.com/2007/12/28/index-fund-investors-earn-more-from-investments/#comment-131372 I would humbly suggest that the fair comparison is not the five-year track record but the 21st Century track record of returns since 12/31/1999 which would include the full cycle including the three years of 2000-2002 when S&P 500 index funds (I assume that is what you are talking about) which wiped out a lot of retirement savings. If you had to withdraw during that period you could have wiped out much of your savings in a short time. If you "stayed the course" you might have enjoyed buying at the bottom but not the route there. Index funds like "actively-managed funds" did nothing to go to cash or sell securities short to protect investors money over a three-year period. That's what they promissed to do and what they did. Markets are too volatile not to diversify among the strongest sectors or to invest only domestically and overlook foreign stocks enjoying real growth as China drives the world economy. Think about it. I don't want to pick a fight, simply suggest that there is nothing wrong with a prudent proactive management program unless you are lazy or refuse to entertain the possibility and acknowledge that some have made it work. After all this is investment management, not investment storage. Bill Donoghue I would humbly suggest that the fair comparison is not the five-year track record but the 21st Century track record of returns since 12/31/1999 which would include the full cycle including the three years of 2000-2002 when S&P 500 index funds (I assume that is what you are talking about) which wiped out a lot of retirement savings.

If you had to withdraw during that period you could have wiped out much of your savings in a short time. If you “stayed the course” you might have enjoyed buying at the bottom but not the route there.

Index funds like “actively-managed funds” did nothing to go to cash or sell securities short to protect investors money over a three-year period. That’s what they promissed to do and what they did.

Markets are too volatile not to diversify among the strongest sectors or to invest only domestically and overlook foreign stocks enjoying real growth as China drives the world economy. Think about it.

I don’t want to pick a fight, simply suggest that there is nothing wrong with a prudent proactive management program unless you are lazy or refuse to entertain the possibility and acknowledge that some have made it work.

After all this is investment management, not investment storage.

Bill Donoghue

]]> By: Sun http://www.consumerismcommentary.com/index-fund-investors-earn-more-from-investments/comment-page-1/#comment-130387 Sun Sat, 29 Dec 2007 06:08:30 +0000 http://www.consumerismcommentary.com/2007/12/28/index-fund-investors-earn-more-from-investments/#comment-130387 That AIVSX example is quite misleading IMO. There are plenty of funds out there returned quite well but don't carry a load. I can give you an example of CGMFX, an actively managed fund whose 5-year annualized return is 37.16% according to Morningstar. Though the fund has a 1.02% ER, I won't replace it with an index fund. That AIVSX example is quite misleading IMO. There are plenty of funds out there returned quite well but don’t carry a load. I can give you an example of CGMFX, an actively managed fund whose 5-year annualized return is 37.16% according to Morningstar. Though the fund has a 1.02% ER, I won’t replace it with an index fund.

]]> By: Mrs. Micah http://www.consumerismcommentary.com/index-fund-investors-earn-more-from-investments/comment-page-1/#comment-130300 Mrs. Micah Fri, 28 Dec 2007 18:25:52 +0000 http://www.consumerismcommentary.com/2007/12/28/index-fund-investors-earn-more-from-investments/#comment-130300 I *heart* VFINX. I don't understand why more people don't buy it or something similar. Or even simple target retirement funds. I've met a fair number of people who are reluctant to sell their employer's in their 401(k)s and thus have strangely-weighted portfolios. Or who buy a few big stocks they think will do well. *sigh* I *heart* VFINX.

I don’t understand why more people don’t buy it or something similar. Or even simple target retirement funds. I’ve met a fair number of people who are reluctant to sell their employer’s in their 401(k)s and thus have strangely-weighted portfolios. Or who buy a few big stocks they think will do well. *sigh*

]]> By: The Saving Freak http://www.consumerismcommentary.com/index-fund-investors-earn-more-from-investments/comment-page-1/#comment-130281 The Saving Freak Fri, 28 Dec 2007 14:52:35 +0000 http://www.consumerismcommentary.com/2007/12/28/index-fund-investors-earn-more-from-investments/#comment-130281 So you can trust your money to an "expert" or you can just invest in capitalism. I think I will take capitalism. So you can trust your money to an “expert” or you can just invest in capitalism. I think I will take capitalism.

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