#1 By: Rob Beschizza, September 17th, 2013 10:39
#2 By: Keith_Ulysses_Welch, September 17th, 2013 10:58
Yeah, if you already have money, you can make more.
#3 By: Jennie_Brown, September 17th, 2013 11:09
Where do I put, "Pay off towering mountain of student loans" in?
#4 By: Jason Andresen, September 17th, 2013 11:15
This advice is basically: Avoid fees, and put away as much money as possible.
#5 By: Mike , September 17th, 2013 11:37
If you, like at least 99% of the world, are a worker, and don't have enough wealth to live off of interests and dividends alone, you are buying into your own exploitation when you own stock via a 401k or mutual fund. The bankers and traders managing those funds invest them in such a way that companies that bust unions, outsource jobs to the most exploitative regions, pollute the air and water, etc get the most money, because those are all ways of externalizing costs from capital onto labor.
Fuck this petite-bourgeoisie nonsense. If you know what's good for you and your class, save your money to buy guns, explosives, a hidden cash and prepaid credit card stash to fund strikes and insurgencies, etc. Invest in the tools needed to rise up and destroy your bosses.
#6 By: C P, September 17th, 2013 11:45
I'd change mutual Fund to ETF. Lower cost, easier to trade in and out of. Covers same ground as mutual funds.
#7 By: knoxblox, September 17th, 2013 11:46
I'm glad they were smart enough to fit that last one in. Caring for the ones who may eventually care for you is the best insurance of all.
#8 By: Jorpho, September 17th, 2013 12:07
What does it matter if an actively-managed fund has fees if it ultimately provides a better return than a fund that isn't actively managed?
#9 By: Suzanne, September 17th, 2013 12:08
I bought into the 401k idea until I was in my mid 30's, my husband was out of work for an extended period of time, and we had to live off our 401k. Obviously, it was not what we had planned to do with it, but it sure bit like the Dickens when we had to tap into our "savings" at a 20% hit right when we could least handle it.
I am contributing again because I have a good employer match where I'm at, but I am really questioning who makes money on the things and how they ended up replacing pension plans.
#10 By: Brian Sizemore, September 17th, 2013 12:08
Technically it wouldn't assuming you did your research and made sure it was returning a high enough difference to compensate for the managed cost. However I suspect a lot of people might not go that far and just end up putting money there because it has a good rate of return.
#11 By: Suzanne, September 17th, 2013 12:09
Because historically every fund tends to sink to the same rate; it's pretty nigh to impossible to consistently beat the market.
#12 By: Brian Sizemore, September 17th, 2013 12:12
Easy - as the company you not longer continue to pay an employee is who no longer working for you for the next 20+ years. Technically a pension "fund" should work in the same was as a personal 401k or other retirement accounts, however the risk and overhead has been moved from the company to you. Ultimately the company saves money because they needed to invest a lot more in their pension than they would ever give you in a 401k match.
#13 By: Brian Sizemore, September 17th, 2013 12:15
Step 0: Acquire a job that allows you to save +$17k for your 401k/retirement plus an additional 20% of your paycheck.
#14 By: Boundegar, September 17th, 2013 12:27
I have known quite a few professional money managers, and I do not think they understood that last point very well.
#15 By: Andrew, September 17th, 2013 12:31
Yeah, but ETFs only make sense once you have enough to make the transaction costs worth it, plus it's much harder to set up a preauthorized purchase plan, so you have to remember to do your contributions. I don't know what it's like abroad, but here in Canada conventional wisdom says ETFs make sense once you hit a portfolio of around $100K. For people with less, check out the ING Streetwise Balanced Growth fund or the TD e-series funds.
#16 By: Joe Castleman, September 17th, 2013 12:34
I think Klein covered this in the last paragraph.
#17 By: Andrew, September 17th, 2013 12:34
Don't try. Historically investors who go for a portfolio of indexes with low management costs do better than most active investors. I highly recommend checking out the "Couch Potato" strategy.
#18 By: daneel, September 17th, 2013 12:56
#19 By: TheMetalPedant, September 17th, 2013 13:00
For a brief moment, I thought this was a list of investment tips by Jackson Pollock. When I realized my mistake, I was significantly less interested.
#20 By: Suzanne, September 17th, 2013 13:03
Ding Ding Ding Ding Ding!
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