|
Posted by Elle on April 11, 2006, 9:30 am
> me wrote:
>>Most mutual funds can be bought directly, why get the
>>broker involved?
>
> It self-empowers you to take control, which is important
> if you worship
> Oprah and Suze, but in reality it's usually as useful as
> furiously
> shuffling deck chairs on the Titanic..
ISTM this is a confusing statement. Suze Orman would likely
advise newbies to go with Fidelity, Vanguard, etc. for their
mutual funds. Winfrey recently had a show on reducing family
debt and expenses. If she broached the topic of buying
mutual funds, any guest expert she had would likely say the
same.
> At the very least, I don't see
> any reason to pay extra to trade mutual funds through a
> broker.
Right.
|
|
Posted by Mark Freeland on April 11, 2006, 12:45 pm
Elle wrote:
>
> > At the very least, I don't see
> > any reason to pay extra to trade mutual funds through a
> > broker.
>
> Right.
You may not see any reason, but sound economic reasons do exist.
For example, supposed I wanted to invest $25K in PIMCO Total Return Fund
for a year or more.
Which of the following alternatives would be better?
PTTDX, NTF, with its 0.25% 12b-1 fee raising total expenses to 0.75%, or
PTTRX, $35 fee at Vanguard, with its 0.43% expense ratio
If one went to PIMCO to buy PTTRX, one would have to pony up $5M, so
that route is out.
http://www.allianzinvestors.com/documentLibrary/mutualFunds/prospectuses/PIMCO_Total_Return_Fund_Prospectus_Inst_Admin_Shares.pdf
If one tried to circumvent PIMCO, and get Bill Gross through Harbor, one
would still be paying 0.58% for his services there - one would still
wind up paying more if you held for a year. Or one could try Managers
Fremont Bond, 0.60% expenses.
I've paid fees when it gave me the better deal. Don't exclude anything
without working the numbers.
--
Mark Freeland
nNeEwTs@sonic.net
|
|
Posted by R. Anton Rave on April 12, 2006, 2:03 am
Elle wrote:
>> me wrote:
>>>Most mutual funds can be bought directly, why get the broker involved?
>>It self-empowers you to take control, which is important if
>>you worship Oprah and Suze, but in reality it's usually as
>>useful as furiously shuffling deck chairs on the Titanic..
>ISTM this is a confusing statement. Suze Orman would likely
>advise newbies to go with Fidelity, Vanguard, etc. for their
>mutual funds.
Sometimes even if your comprehension improved, it could still be
totally wrong.
Suze, Oprah, and other people with misspelled first names are known for
attracting airhead women and telling them to take control of their
lives. That can be fine career advice but bad for investments because
many people will never develop a feel for a highly active investment
system. Worse, they may not realize this, just as some people can't
tell when they sing out of tune
>Winfrey recently had a show on reducing family debt and expenses.
Her best financial advice is either limit personal spending to 1% of
income (about $2 million, in her case) and have your scientists work on
an immortality formula. On the other hand, 99% of Oprah's wealth is
due to her job (and "Dr." Phil's job) and not to any investment acumen.
>If she broached the topic of buying mutual funds, any guest expert
>she had would likely say the same.
"Oprah Approved" is not always a sign of quality, as evidenced by Suze
(too much emphasis on insurance products, once lost her commodities
broker's license for 30 days) and Charles Givens (but now that he's
dead, he makes more sense than ever, although while alive he too
recommended Fidelity funds).
|
|
Posted by Elle on April 12, 2006, 9:56 am
> Suze, Oprah, and other people with misspelled first names
You evidently don't read Suze. She puts out the same stuff
as Clark Howard, Dave Ramsey, et al.
A pity you would stupidly criticize Winfrey's shows on
getting people out of debt, which is an epidemic in the U.S.
I have your number. You speak before you have the facts.
<shrug>
|
|
Posted by Ed on April 12, 2006, 10:20 am
> You evidently don't read Suze.
The woman is repulsive.
|
| Similar Threads | Posted | | Re: Newbie questions | April 11, 2006, 1:08 am |
| Re: Newbie questions | April 11, 2006, 8:14 am |
| Re: Newbie questions | April 11, 2006, 8:15 am |
| Please help newbie | November 21, 2006, 6:24 pm |
| selling fund shares (newbie) | June 30, 2006, 7:50 pm |
| newbie question about fees for ETF if you do active trading | January 6, 2007, 7:56 pm |
| Ask Questions About Your Portfolio | February 27, 2008, 7:15 am |
| Ask Questions About Your Portfolio | February 27, 2008, 7:18 am |
| Ask Questions About Your Portfolio | April 5, 2008, 6:41 am |
| Ask Questions About Your Portfolio | April 17, 2008, 9:19 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap