One of the more popular mutual fund styles are so-called tax-advantaged funds. Folks who are investing in accounts outside of their tax advantaged accounts such as 401(k)s and IRAs often invest in these funds to try to reduce their tax burdens a bit. These funds are ostensibly managed with a department pouring over the tax […]
There is a ticking financial time bomb in the portfolio of many investors, especially those of us with a Day Job. This time bomb is scary because the way the product is purported to work is so different from the way it works in practice. What am I talking about? Well, you clicked the article (or scrolled in your RSS reader)… I’m talking about leveraged ETFs.
“Finance is the art of passing money from hand to hand until it finally disappears.” – Robert W. Sarnoff.
From the “it’s about time” category, I present the Supreme Court case Jones v. Harris Associates. The case was filed because a group of investors felt:
1. The board of directors wasn’t sufficiently neutral (the law requires 40% of advisors to be “disinterested”).
2. The fund didn’t disclose the advisers’ financial links to the trustees
3. Compensation for the adviser should be controlled by a majority of the disinterested advisers
As Jason Zweig of the Wall Street Journal writes, the Supreme court has no business setting fees. However, the disclosure rules on mutual funds stem from older laws. Is it time for reform in fund disclosure?
Not all of us have surplus money stacked up under our mattresses. But it isn’t very hard to believe that after careful budgeting and hard work we can put away some money for the future. When we finally get to this point some of us see many opportunities and are unsure of what to do with our money. Personal investing can be a very opportunistic option and can pay off greatly if money is put in the right places. We strive to put away money for investing, and then have no idea of what investment opportunities are available and which are the most advantageous. It is important to research different roads we can take before we get to them.