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Ask The SEC
Who is the SEC and why should I ask them anything? The Securities and Exchange Commission in Washington, DC is the government bureau that regulates the securities industry. They make the regulations that all stock exchange listed companies, brokerage houses and mutual funds must follow.
My readers know that I am a believer in the purchase of mutual funds for investment and retirement accounts. The reason is that very few people are qualified to choose stocks. Unfortunately that also applies to many mutual fund managers especially when you look at the performance of the majority of funds for the year 2000.
I can excuse the average Joe for not being able to pick winners, but I cannot excuse a fund manager who is paid huge amounts of money (always 6 figures and mostly 7 figures) to lose the cash of the little people who invest. There are 77,000,000 owners of mutual funds and 80% of them have less than $50,000 in their accounts. Why is anyone giving them their money to have them lose it? These are the "experts".
Yes, they are accountable to you, but there is only one way to make that accountability register and that is to close out your account. If you are losing money then take it away from your current "expert" and put it with a mutual fund that is currently going up. And when that one starts down you switch to another one that is going up. My experience shows you will not be changing more than about once or twice a year. But you will not give back 30% to 50% of your money by doing this.
You see mutual fund managers are paid not on performance, but on how much money they have in the fund. That is one of the reasons they always tell you to Buy and Hold. You buy. They hold. They make money. You don't.
Back to the SEC. Here is what you need to ask them. Why can't mutual fund managers be paid a percentage of the profits they generate rather than skimming a percentage off the top every year even when they lose the customers' money? I doubt you will get a satisfactory answer, as you can be sure the mutual fund lobby has more influence than you do. The same may be true if your Congressman were to institute that as a law. He gets campaign contributions from the lobbyists.
This rule is already being allowed for hedge funds, which are very similar to mutual funds; however, only rich people can buy these. Maybe it is time someone had the SEC look after the interests of the small mutual fund investors. If you get an answer please let me know.
Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know.
Investing - Google News
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A Secret Revealed: Why Most (Day) Traders Fail
The following perspective on (day) trading comes from my many years of experience of active day trading or being the moderator of one of the largest day trading chat rooms on the Internet.One of the biggest problems I see with new traders (and even some old ones) has nothing to do with the software or the broker they are using.
Is Offshore Banking for You?
You've probably heard about people who keep their money offshore. Most likely you assume they're all wealthy businessmen; millionaires, who have so much money they somehow 'qualify' to move it out of the country, right? Wrong! Offshore banking can be a benefit for anybody regardless of income.
Creating a Financial Future--Putting Your Plan Into Action Part 2
Real Estate can be a useful tool for investing. The simplest real estate investment is not truly an investment, but a cost-reduction - that is owning your own home.
Planning for Retirement
Almost without exception, people don't start planning for their retirement early enough in their lives. Young people leaving High School or College and going into their first paid position find it difficult to look or see ahead to age sixty or sixty-five.
Creating Wealth by Gearing Up
Gearing is where you borrow money to invest. As already mentioned, it is best to clear all your debt before looking at investment.
Wit and Wisdom on Money, Wall Street and Success - Part #1
I love to collect quotes as they concisely promote a philosophy which is readily understandable.In my 25+ years of investing I have collected hundreds of quotes related to Wisdom, Wall Street and Success.
Global Markets: A Window on the World Economy
Expectations drive the market. Every stock price is driven by what people expect the company to do.
Selecting Rules for Investing and Trading
There are three important differences between investing and trading. Overlooking them can lead to confusion.
Retire Dollar Smart
Jim Miller is a registered investment advisor. This means that he is not beholden to a particular brokerage or financial institution.
Index Trading Weekly Update
Here is a sample of the last newsletter:SP500 Last Signal Comment We just had a new sell signal last friday on june 10th 2005. As expected we faced strong resistance at 1200 and it ended up with a double top as stated in previous issues.
Rules of Simple IRA Your Business Needs to Know
A Savings Incentive Match Plan for Employees plan, better known as a SIMPLE plan, is an IRA-based retirement plan available to employers with fewer than 100 employees.Under a SIMPLE IRA plan, an employee can contribute a portion of his pay to his SIMPLE IRA account.
Trading Is Not Rocket Science!
Despite what some people may lead you to believe; day trading, swing trading and trend trading is not anywhere as difficult as they would like you to think. It really boils down to two key components.
Has your broker ever told you that a stock is "overbought" or "oversold"? He probably went on the explain that the stock you own (I hope you didn't) had gone down so far that it now was oversold and due for a rally. He might also have encouraged you to buy an equal amount to "dollar cost average" your position so that when ("if"- he didn't say that, I did)) it did go back up you could "get out even".
Shop More, Save More for College Gimmick or Reality?
The man sat in a chair beside a dressing room at a Tampa, Fla. maternity store.
The Dreaded Direct Question
(Please have a glass of water within reach before reading this article.)Your personal financial planning is the topic of discussion here today, but not quite yet.
Straddle Strategies in Option Trading
The straddle strategy is an option strategy that's based on buying both a call and put of a stock. Note that there are various forms of straddles, but we will only be covering the basic straddle strategy.
Invest or be Pink Slipped
Firing an employee seems to be easier and easier for corporations. Up until now you allowed them to set your clocks.
Learn How to Lose and Risk Management
One of the leading traders on Chicago Mercantile Exchange, because of a single trade lost everything!For all of his years of experience and money, he had failed to master the most important concept in trading: Risk Management!Each trader seems to have his own unique way of identifying market opportunities. One buys a stock in the hopes of never having to sell it, while another might hold a position in the market for a day or even just a few hours.
Remembering TEOTWAWKI and Learning from It
Its only been about 5 years since we had major scares in the marketplace regarding Y2K. You might recall that many computer systems were not programmed to be able to understand the change from 1999 to 2000.
The Truth About Real Estate Investing - Is It Right For You?
You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing.
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