Mutual Funds

Can You Beat the Market? Is Index Fund Investing Overrated?

Can You Beat the Market? Is Index Fund Investing Overrated?

By in Asset Allocation, Investing, Money Management, Mutual Funds | 10 comments

Is It Possible to Beat the Market? After writing close to 700 articles for this website, occasionally, it makes sense to come back and update some of the older articles. In this case, we’ll go back to the index fund question and evaluate whether this passive investing approach can still beat the market. This article was originally written about 2 years ago. The inspiration for this post came from the New York Times article “Beating the Market, as a Reachable Goal”, written by Jeff Somer. In the article, Robert A. Olstein, insulted by the arguments in favor of index funds, claims...

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5 Reasons to Choose Index Funds for Your Investment Portfolio

5 Reasons to Choose Index Funds for Your Investment Portfolio

By in Investing, Money Management, Mutual Funds, Stocks | 23 comments

Stock Picking is Time Consuming & Destined for Underperformance I haven’t always been an index fund investor. When I started investing, I was a value stock picker. I wanted to invest in companies stocks  that were selling below than their intrinsic value. I spent hours reviewing company annual reports, Securities and Exchange (SEC) documents and listening to company conference calls. During those years, there were some amazing wins – I bought Oracle priced in the teens and sold it for over $100 per share. There were also some losses. Nokia looked like at a bargain at $30 after falling 50 percent, but...

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5 Signs it May Be Time to Sell Your Mutual Fund

5 Signs it May Be Time to Sell Your Mutual Fund

By in Investing, Money Management, Mutual Funds | 2 comments

Should I Sell My Mutual Fund? By Guest Contributor, Arielle O’Shea The first quarter of 2016 saw one of the greatest stock market recoveries in modern history — it was the first time in over 80 years that the Standard & Poor’s 500 index dropped by more than 10% over three months and yet still managed to finish ahead of its start. Does this market volatility mean you need to sell your mutual fund?  In retrospect, the seesaw quarter underlines the advice experts give to long-term investors: Keep to your plan and stomach the troughs. Smart investing is like...

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2016 Robo-Advisor Mash Up – Links to the Best Posts

2016 Robo-Advisor Mash Up – Links to the Best Posts

By in Investing, Links, Mutual Funds | 3 comments

Robo-advisors or technology assisted investing platforms are all the rage. What’s not to love-low fees, research-supported investment approaches and regular rebalancing. Not only are there stand-alone robo-advisors such as Wealthfront, Betterment, and Personal Capital but we’ve got the big brokers starting their own versions. These well known firms have joined the robo-advisory ranks; Schwab Intelligent Portfolios, Vanguard Personal Advisor Services, and then there’s TrakeKing Advisors. TradeKing offers a unique robo with access to a momentum style investing along with the passive approach. I’ve been writing a lot about this new platform for Investopedia and think the opportunities for investors...

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Is Passive – Index Fund Investing Over? Are Robo-Advisors Doomed?

Is Passive – Index Fund Investing Over? Are Robo-Advisors Doomed?

By in Advanced Investing, Money Management, Mutual Funds | 2 comments

Is There a Dark Cloud Hanging Above a Passive Index Fund Investing Approach? Most, although not all, of the robo-advisors practice some form of a passive index fund investing approach. This type of investing is based upon widely accepted and well researched investment practice that demonstrates that it’s extremely difficult for actively managed funds to beat the performance of the major market indexes such as the S&P 500 and others. Are robo-advisors are doomed? What if Everyone Started Investing in Index Funds? Does That Mean Robo-Advisors Are Doomed? How would this phenomenon impact the robo-advisors, many of whom practice an...

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You Don’t Need an IRA; There’s Always Social Security

You Don’t Need an IRA; There’s Always Social Security

By in Automatic Saving, Bond, Investing, Mutual Funds, Retirement | 17 comments

 Do I Need a Roth IRA If I Have Social Security?   I’m one of those dinosaurs that started her first IRA in her 20’s at the beginning of the IRA movement. At that time, there was no such thing as a Roth IRA, so I invested in a traditional IRA. On top of that anomaly, I was the only 25 year old at a retirement seminar in a room full of 60 year olds. The question of whether I needed need a Roth IRA if I have Social Security didn’t cross my mind since I believed that there’s no such...

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