| Will you be retiring on mutual funds? |
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coeli
New Member
Cash: $ 1.15
Posts: 3
Joined: 16 May 2006
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| Will you be retiring on mutual funds? |
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I am 49 years old, female and widowed. This is my story: in 2000 I was listening to my broker regarding stock tips on tech stocks and mutual funds until I lost half of my savings when the market imploded. He made a boatload in commissions and knew the whole time my portfolio was a house of cards. He had no idea what PMC-Sierra’s business was, but he told me to buy it anyway so (a) he could get the commission and (b) he could take credit as being ‘smart’ I lied awake at night wondering if I could ever retire on 200K. Sadly,.. the answer as we all know is that I couldn’t without taking a job as a Walmart greeter….
So I got smart and I got educated….
I hired a consultant who knew what I was looking for and now I’m in investments that put cash flow in my pocket, mostly via royalties and real estate private placements. Any stocks I own are solely in Index funds and I will NEVER OWN A MUTUAL FUND AGAIN.
Why? 1/3 chance of making money – markets move up, down and sideways. Ever look at the loads and fees on you mutual fund prospectuses? They amount to ten’s of thousands of dollars over your employed and productive years. For what? Your BROKER.
Get Educated and most importantly, be very careful about who you listen to. These salesmen have no care in the world about what happens to you and I’m living proof of this. I almost turned destitute.
If any of you are interested, send me an email or call <deleted>. He helped me out of my hole and now my Net Worth is closer to 500K in alternative investments
Thanks for reading this pathetic story, turned for the most part, better.
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Tue May 16, 2006 1:13 am |
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coaster
Senior Advisor
Cash: $ 1355.60
Posts: 6675
Joined: 11 Oct 2005
Location: Wisconsin
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I moved this to an appropriate forum for you. Please post only once and leave the promotion out until you've earned it, as per the forum rules. Thank you.
~Tim~
Eye Candy : Why Whimsy
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Tue May 16, 2006 1:27 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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| Re: Will you be retiring on mutual funds? |
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quote:
Originally posted by coeli
Any stocks I own are solely in Index funds and I will NEVER OWN A MUTUAL FUND AGAIN.
Swearing off mutual funds because of one bad experience is not wise.
quote:
Originally posted by coeli
Why? 1/3 chance of making money – markets move up, down and sideways.
That isn't how it works: the market does not move in each direction 1/3 of the TIME. It continuously moves up overall...more specifically, 95% of the time in any ten-year period.
The fact is, you got greedy in 2000 and fell for the 'can't lose' proposition and paid the price. Bears and Bulls make money, but Pigs get slaughtered.
quote:
Originally posted by coeli
Ever look at the loads and fees on you mutual fund prospectuses?
I look at TOTAL RETURN...which is all that matters....the end, not the means.
"Expect me when you see me."
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Wed May 17, 2006 1:43 am |
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more freedom
Full Member
Cash: $ 16.20
Posts: 80
Joined: 12 Jul 2006
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I am a big fan of Rich dad- Robert Kiyosaki, may be this could help.
I found this article somewhere
quote:
Kiyosaki's ideas about mutual funds have generated a lot of confusion. Here is my understanding of all of his thoughts about them, not just the "sound bite" that they are risky.
In the author's note to "Who Took My Money" he says "Ninety percent of investors are average investors and should continue saving, investing in mutual funds and their 401(k) and retirement funds. The information in this book is for the 10 percent who want to educate themselves to become professional investors and increase their investment returns and accelerate the growth of their financial portfolios."
So, the first part of the answer to your question is another question: What are your financial goals and what are you prepared to do to reach them?
One possible answer to that question is that you have no goals and are not prepared to take any action to improve your financial situation. That is a foolish and very risky answer! This answer represents one end of the financial spectrum. And, unfortunately, it is probably the most popular answer people have to the question.
The other end of the spectrum is that you have a powerful goal to be rich - rich as in more money than you know what to do with rich - and you are willing to do whatever it takes to become rich. If that is your goal, Kiyosaki feels that you must become what he called in the author's note a professional investor. In truth, not very many people truly have that goal in the sense that they are NOT willing to pay the price to reach it.
In the middle of the spectrum is that your goal is to be reasonably financially comfortable and secure during your working life and in retirement. You don't want to be rich (and definitely aren't willing to pay the price), but you do want to be comfortable and secure. In this case, Kiyosaki says you should become an average investor.
On page xxiii of "Who Took My Money?' and again on page 185, Kiyosaki has a great chart entitled "Why the Rich Get Richer" that shows the investment vehicles of an average investor, and those of a professional investor.
An average investor has a job or is self-employed, saves money, gets out of debt, buys his own home, and invests in mutual funds and equities (stocks), generally under the umbrella of a 401(k), IRA or SEP.
Kiyosaki is not really against mutual funds, he says that average investors should invest in them!
A professional investor owns a business, invests the profits in cash flow generating real estate, and keeps any un-invested profit growing in one or more sophisticated paper assets.
These investments make a whole lot more money than the investments of an average investor, but they demand a much higher level of commitment to learn, understand and manage them.
So why does he say that mutual funds are risky and why does he seem to be against them?
Owning a mutual fund is not very difficult. It is kind of like riding a tricycle - almost anyone can do it. The investments of a professional investor, on the other hand, are like flying an F-18 off of an aircraft carrier - not everyone can do it, and those who can only do it successfully after years of learning how to do it.
But, who is at greater risk: a toddler riding his tricycle down the street, totally oblivious to what is going on around him and having limited possible responses to whatever situation presents itself; or a highly trained and experienced pilot making a night carrier landing? I'd say the toddler is at greater risk.
So that is why Kiyosaki says that mutual funds are risking - because they are easy, but they do not encourage an investor to be aware of what is going on, or allow the investor to develop a range of responses to a given situation - so a mutual fund investor is like the kid on the tricycle.
But, if you not willing to do what it takes to become a professional investor, then he STRONGLY encourages you to at least become an average investor, which includes buying mutual funds
.[/quote]
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Thu Jul 13, 2006 4:12 am |
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bretdelman
New Member
Cash: $ 1.45
Posts: 6
Joined: 11 Oct 2006
Location: saint joseph missouri
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| retired on mutual funds |
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Hello I retired this year and plan on living off my
investment in mutual funds. I have 24 different
mutual fund companies and plan to live off dividends
and selling 1 fund each year. I bought most of them
over the last 20 years and paid 10,000. for each. I
have quite a few over 50,000. at this time. I will probably
try to sell the worse performers 1st if I can. I'm Del 
Get up on top or go down LOL
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Wed Oct 11, 2006 3:58 am |
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