Comments on Triaging My Way To Financial Success: The Return of Capital:

Anon - mutual funds "can" give an investor a low c...

2009-04-10T08:35:00.000-04:00

Anon - mutual funds "can" give an investor a low cost alternatives to investing in equity markets vs. straight equity (stock) investing, but the vast majority of people aren't aware of all the costs associated with investing via professional management. Don't you think that clearly presents a serious conflict of interest?

As for your 3% claim I would like to see the study/research that provided that claim. There are a number of studies that demonstrate that a passive approach (index investing) without any professional guidance outperforms professionally managed mutual funds over the long-term. There will be individuals (such as Buffett, Cundill, etc) who consistently outperform, but that is not the norm.

Mutual funds give people a low cost alternative to...

2009-04-09T22:13:00.000-04:00

Mutual funds give people a low cost alternative to investing in the markets. Those that are on this post are clearly in a different class, yet the vast majority are average people then to save for their future in a prudent and well managed way. With the priveledge of this professional management comes expert advice, and all of this comes at a cost. Research has consistently shown that those investors that use financial advisors fare 3% better on average than those investors then don't use professional counsel.

Just my two cents.

Anon #2: I can understand your first point, but co...

2009-03-07T21:36:00.000-05:00

Anon #2: I can understand your first point, but cost (fees, commissions, taxes) make a significant difference in the long-term returns of investments.

I would be interested in hearing about how your advisor saves you "10 times more tax" each year - if possible shoot me an email and I'll be more than happy to present the other side of the argument from your perspective.

Yeah right.

I'm sure everyone I know has no...

2009-03-07T21:21:00.000-05:00

Yeah right.

I'm sure everyone I know has no life to speak of and would much rather spend countless hours researching stocks then spend time with their families.

My advisor saves me 10 times more tax every year than what I pay on MER's with my funds. The problem is, most Canadians get their advice from the banks and those so called "advisors" are nothing more than mutual fund salespeople. Get a REAL advisor and you won't whine about the little things.

Cheers

I totally agree, having fired my mutual fund advis...

2009-02-17T13:23:00.000-05:00

I totally agree, having fired my mutual fund advisor many years ago. Make sure to read the follow-up post: "Return of Capital II". It is an extremely good article and should be mandatory reading for ALL investors!! The mutual fund industry is finally being exposed for what it is-Gangsterism!! You assume all the risk and they realize the profits, no matter what the market is doing. Nothing more than common thieves. And Seg funds are nothing more than a new twist on an old con that is working quite nicely for the fund industry. Once people figure out they don't need the so-called "pros" anymore, investing will be a lot more fun and profitable!!

I have personally had this experience!

Sinc...

2009-02-08T16:40:00.000-05:00

I have personally had this experience!

Since then I have moved ALL me accounts from my so called "financial advisor" ( who was loking out for himself more than me).

I have moved to a discount broker and now handle all my own money,,,,purchasing dividend paying stocks or trusts when the price seems right.

I am seling out of these mutual funds little by little , but have been stymied at times by the dam fees to get at MY OWN MONEY!!

to whoever is reading this,,,,trust no-one but yourslf,,,and NEVER buy a mutual fund, EVER.

If you want to play the indexes,,,buy ETF's.

good luck,