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bigred

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Posts posted by bigred


  1. Many 403(b) platform providers have this odd "invest all your asset types as if they were commingled" policy due to their systems and/or technology platforms not being up to the task of recordkeeping these accounts separately.

     

    It sounds like it should be an easy fix, but many of these recordkeepers are finding they have other places to spend their $.

     

    They are not violating any IRS or DOL mandates, because by your description, your Roth money is still being treated as Roth, and Traditional as Traditional. You simply are not being provided the option to maintain distinct asset allocations for the different source IDs.

     

    Vince

     

     

    This mixed account does not allow the investor to accumulate as much or as little as he/she would like in the traditional 403(b) account and the Roth feature. To me this is a violation of the IRS rule that states a designated Roth account must be maintained.

     

    Joel, I guess I don't understand how they wouldn't be able to accumulate as much. If you max is 17k you can't go over it any way.

     

     

    I'm referring to the investor's desire to use the Roth for equity trades so that over time these profits, when withdrawn, will not be taxable. He is not being allowed to do this because of the pre-determined ratio of Traditional dollars to Roth dollars in a single account.

     

    Joel

     

    I've got you. My wife's account operates this way but it does allow to specify which source of money for each investment.


  2. Many 403(b) platform providers have this odd "invest all your asset types as if they were commingled" policy due to their systems and/or technology platforms not being up to the task of recordkeeping these accounts separately.

     

    It sounds like it should be an easy fix, but many of these recordkeepers are finding they have other places to spend their $.

     

    They are not violating any IRS or DOL mandates, because by your description, your Roth money is still being treated as Roth, and Traditional as Traditional. You simply are not being provided the option to maintain distinct asset allocations for the different source IDs.

     

    Vince

     

     

    This mixed account does not allow the investor to accumulate as much or as little as he/she would like in the traditional 403(b) account and the Roth feature. To me this is a violation of the IRS rule that states a designated Roth account must be maintained.

     

    Joel, I guess I don't understand how they wouldn't be able to accumulate as much. If you max is 17k you can't go over it any way.


  3. First let me qualify who I am and what I am about. I have 2 degrees from the University of Arkansas in Fiance and Insurance, and for 5 years after college I actively marketed 403b and 457 products. I am now a Compliance Officer for a business that now provides TPA services to around 100 Arkansas, Texas, Georgia, and Florida public schools. I am not giving advice only my opinion on this matter.

     

    We charge our service fees to the financial institution operating in a school. We believe this is the correct way to handle the expense of providing compliance for that Financial Institutions Products. The cost varies on the number of participants but ranges approximately 1.00 to 3.00 per participant on payroll deductions.

     

    Most of the financial companies, Including ASPIRE do not have a department or staff to handle the 403b compliance regulations, nor do they provide records keeping. It is more cost effective for them to pay a TPA like ours, to handle the not so frequent issues, then it is for them to hire a full time person to fill that role. In addition most TPAs will not offer any 457 TPA services, only limit testing ( this means making sure a participant does not go over the contribution limits set by IRS) or common billing (this means consolidation of all vendor bills into a single invoice or information billing system).

     

    This is where my opinion will come in.

     

    I have seen vendor's, including ASPIRE, that charge the clients for TPA services. In most cases there has never been a TPA. They have been collecting fees just to collect them. When I contacted ASPIRE, to negotiate our TPA agreements, they disclosed in writing that they collect " $40 annually and .15 bps for TPA fees" of that they are only willing to pay $20, the rest they keep for a service that they will never provide. When a TPA charges more than the $20 annual fee they in turn charge their client's account for the overage in fees instead of using the other $20 or bps. In addition they charge a client between 50-100 dollars to process a loan or transfer/rollover. FEES FEES AND MORE FEES !!! There are also all kinds of other fees associated with these accounts, everyone needs to start asking questions about the fine print.

     

    My stance, (personally and in no way reflect those of my organization DISCLAIMER ), as TPA for our schools is simple, It appears this industry is all about what can I take from a client or a school instead of what can I do to help promote good financial decision making. We have a saying here in Arkansas, All they want to do is milk the cow and never shovel the ...... We have since stopped all deductions for any vendor, including ASPIRE, who's policy is to pass on the fees to a client or a school. These are their products and in my opinion they should be the ones that make sure all IRS guidelines are being followed by the agents or advisers representing them and the participant's whose money they hold. Thank goodness they are unwilling or I would be out of a job.

     

    If you want more info Post Here, Now that I am a member I will be here often.

     

    And you my friend are a large part of the problem. Where do you think these companies come up with the cash to pay you? I would be willing to guess that the lion's share of companies you work with are insurance companies peddling variable annuities. While they don't make a client write out a check are you aware of the fact the average cost of a variable annuity is over 2.5%? The clients are being charged, it's just whether the charge is transparent or not.

     

     

    I guess you are a noble securities dealer? And are you yourself not a peddler? I do not care if its a variable annuity account of if its mutual fund. While there are many differences, I have no preference to which a client decides to take advantage of, just as long as they take the step. If a client, and I assume you have some, has money invested with you do you not charge a fee based on how much they have in your book? Every time you make a trade do you charge them a fee? Anytime they want to take a distribution do you not charge them a fee?

    How about a fee for advertising? In Arkansas its about availability of advisers or sales people in a rural community, and if your heart is truly invested in helping people, as mine is, would you not recommended them to do what ever is available to them. Is doing something better than nothing? I agree the fees everyone charges are outrageous!! I believe that will change soon with some new legislation that is gaining momentum in California.

     

    I only look at the math, I do not get caught up in the sales tactics and bad mouthing that sales people do. I will ask honest questions and give my honest opinion. I do not peddle anything. I just make sure everyone follows the rules.

     

    As far as how I make my living. Yes we are a for profit firm just like you. If companies out there would have their own departments to handle what I do there would be no need for us, but it is not cost effective. If a school district could handle it they would, again it is not cost effective. So in a way I, and others like me help to hold consumer and producer cost down by reducing the number of people that fund companies and schools have to hire.

     

    As for those evil Variable annuity companies. THEIR CLIENTS ARE UNDER A CONTRACT THAT CAN NOT BE MODIFIED TO REFLECT THESE NEW CHARGES. I can not say this strongly enough, and when a large mutual fund outfit disclosed to me it had been collecting TPA fees, in some cases for six years, and not offering any TPA services or paying out to a TPA it made me question really who would want to business with them.

     

    I am in no way affiliated with any company, I have given up my appointments to all companies. Incidentally I have never marketed a variable product. One reason, I don't believe an Arkansas teacher, that makes less than $30k a year, has any business putting the only money they can save into any mutual or variable product line. Just an opinion not in any way advice

     

    It might be worth it for you to take a little to time understand how an RIA operates and who has a fiduciary duty to the client.


  4. First let me qualify who I am and what I am about. I have 2 degrees from the University of Arkansas in Fiance and Insurance, and for 5 years after college I actively marketed 403b and 457 products. I am now a Compliance Officer for a business that now provides TPA services to around 100 Arkansas, Texas, Georgia, and Florida public schools. I am not giving advice only my opinion on this matter.

     

    We charge our service fees to the financial institution operating in a school. We believe this is the correct way to handle the expense of providing compliance for that Financial Institutions Products. The cost varies on the number of participants but ranges approximately 1.00 to 3.00 per participant on payroll deductions.

     

    Most of the financial companies, Including ASPIRE do not have a department or staff to handle the 403b compliance regulations, nor do they provide records keeping. It is more cost effective for them to pay a TPA like ours, to handle the not so frequent issues, then it is for them to hire a full time person to fill that role. In addition most TPAs will not offer any 457 TPA services, only limit testing ( this means making sure a participant does not go over the contribution limits set by IRS) or common billing (this means consolidation of all vendor bills into a single invoice or information billing system).

     

    This is where my opinion will come in.

     

    I have seen vendor's, including ASPIRE, that charge the clients for TPA services. In most cases there has never been a TPA. They have been collecting fees just to collect them. When I contacted ASPIRE, to negotiate our TPA agreements, they disclosed in writing that they collect " $40 annually and .15 bps for TPA fees" of that they are only willing to pay $20, the rest they keep for a service that they will never provide. When a TPA charges more than the $20 annual fee they in turn charge their client's account for the overage in fees instead of using the other $20 or bps. In addition they charge a client between 50-100 dollars to process a loan or transfer/rollover. FEES FEES AND MORE FEES !!! There are also all kinds of other fees associated with these accounts, everyone needs to start asking questions about the fine print.

     

    My stance, (personally and in no way reflect those of my organization DISCLAIMER ), as TPA for our schools is simple, It appears this industry is all about what can I take from a client or a school instead of what can I do to help promote good financial decision making. We have a saying here in Arkansas, All they want to do is milk the cow and never shovel the ...... We have since stopped all deductions for any vendor, including ASPIRE, who's policy is to pass on the fees to a client or a school. These are their products and in my opinion they should be the ones that make sure all IRS guidelines are being followed by the agents or advisers representing them and the participant's whose money they hold. Thank goodness they are unwilling or I would be out of a job.

     

    If you want more info Post Here, Now that I am a member I will be here often.

     

    And you my friend are a large part of the problem. Where do you think these companies come up with the cash to pay you? I would be willing to guess that the lion's share of companies you work with are insurance companies peddling variable annuities. While they don't make a client write out a check are you aware of the fact the average cost of a variable annuity is over 2.5%? The clients are being charged, it's just whether the charge is transparent or not.


  5. Down 6.5% for 2011, which I am perfectly happy with. My tips fund did well. Luckily I moved some money from emerging market at the very beginning of 2011 into the tips fund; otherwise, I would have been down more. It doesn't matter to me though. I'm still in my 20s so I prefer if the market is down so I can buy cheaper. The cheaper I can buy for the next 10-15 years, the better.

     

    I usually do some moving of my money at the very beginning of January but I have not done that yet this year. It's an election year so I am going to wait until January ends to see how I will move my money.

     

    DK - You may want to consider some rebalancing and sell some of those shares of the TIPS that did well in 2011 and buy back a portion of the emerging markets. It forces yourself to sell high and buy low.


  6. http://www.marketwatch.com/story/mf-globals-risk-mismanagement-2011-11-01?pagenumber=1

    The 3000 employees made an average of $175,000 and what did they manufacture, create or sell that did any good for any person (besides themselves), culture, country, state or city?

     

    Steve, I'm going to have to disagree with you on 50% of MF Global. They used to be a sleepy old brokerage firm that placed orders for people. From my experience I knew plenty of farmers that hedged grain or livestock through accounts there. Now I believe that does add some value by having another firm in the market to keep commission rates down for producers. If I remember right you grew up in a farm in Wisconsin? Corzine grew up on a farm in Northern Illinois. He ran a good business into the ground and left a bunch of productive people out of jobs and without access to their cash.

     

     

    What is the other 50%? According to news reports, MF Global had investments in the most toxic bond funds in Europe: Greece, Italy, Portugal, etc.

     

    You are right, these types of firms "used to be a sleepy old brokerage firm that placed orders for people." Heck, the Wall Street banks used to be that way too, but those days are long gone. The systemic problem that MF is right in the middle of is this:

    1. The corruption began with the advent of high speed powerful technology to facilitate nano-second trading,

    2. the Wall Street Banks getting deregulated by Washington with the repeal of Glass/Steagal in 1999,

    3. when the wall street banks began offering shares in the early 1980s, and

    4. Consequently, the banks have two masters for the first time in history, their clients and now the shareholders, you can guess who their real master is.

     

    My point stands, they don't help ordinary folks, there is no incentive. My god, with millions of bonesus and they are going to make money loaning money to my parent's 140 acre farm in Wisconsin! My parents never hedged anything, of course it was a different era back 50 years ago. Futures contracts are hundreds of years old and served a good purpose for farmers, but now is the era of taking big risks, g ambling is more like it.

    My nephew and his wife have taken over the farming from my parents and my older brother and they are multi-milloinaire, big time farmers, they tell me they cannot get a loan with their 30 year history in the business and 900 milking cows.

     

    Steve

     

     

    The problem with MF Global was that Corzine tried to turn it into his own Goldman Sachs, where he was once a high ranking employee. He took MF's capital, levered it up and made huge bets. A totally irresponsible thing to do with shareholder money. I agree will agree with most of points.

     

    There is a huge difference between a farmer hedging a commodity and what Corzine did. I feel bad for the businesses whose cash is locked up by this and the employees that got screwed by a couple Goldman know it alls.

     

    Bring back Glass Steagll.


  7. http://www.marketwatch.com/story/mf-globals-risk-mismanagement-2011-11-01?pagenumber=1

    The 3000 employees made an average of $175,000 and what did they manufacture, create or sell that did any good for any person (besides themselves), culture, country, state or city?

     

    Steve, I'm going to have to disagree with you on 50% of MF Global. They used to be a sleepy old brokerage firm that placed orders for people. From my experience I knew plenty of farmers that hedged grain or livestock through accounts there. Now I believe that does add some value by having another firm in the market to keep commission rates down for producers. If I remember right you grew up in a farm in Wisconsin? Corzine grew up on a farm in Northern Illinois. He ran a good business into the ground and left a bunch of productive people out of jobs and without access to their cash.


  8. Steve, I think you misunderstood my comment. I'm asking how many of the (3 of 4!) advisors who propose "tactical" i.e. market timing, have outperformed the market long term. My guess is none.

     

    In addition, since they are picking stocks or sectors, they are taking more risk to overcharge and underperform.

     

    Perhaps, but its the same concept. Active management vs. passive. I was just pointing out that Ferri provides data about managers underperforming the market whether is tactical, timing, throwing darts, looking for past patterns with highly paid elite quants trained from the ivy league schools using powerful computers, etc. etc.

     

     

    Steve, have you ever read "When genius failed"? It's about Long-Term Capital Management and their near implosion. I'm currently re-reading Buffett's biography by Alice Schroeder and there are lots of part in there about how "smart" those guys were. I'm hoping it's an interesting read based on their hubris and machismo.


  9. Is there a way I can day/swing trade stocks in my 403b account? I would like to because I think I can increase the value of my retirement plan significantly.

     

     

    Really? There are hundreds of thousands of professionals working on Wall St. and virtually none have beaten the market over time. But you will? Best of luck on that plan.

     

    A more realistic plan is buy a blend of low cost index funds properly allocated and get the market return.

     

    In any event, I'm not aware of any 403b's that allow you to trade individual stocks.

     

    The IRS does not allow you to own stocks in a 403b so you cannot even buy and ETF of an index if you wanted to. The insurance industry really owns this one.


  10. Tony, The choice of investments are very limited in the 403b, only to the administrators funds. As I mentioned in my original post the account value has gone nowhere, and we are planning on using the money to buy a child a car. This is not our major account for retirement savings and why borrow from a bank when we can borrow from ourselves? - At a rate of return greater than what we've experienced? I really don't understand how that wouldn't make sense - and I mean that as a sincere question. Am I missing something as to why it doesn't make sense?

     

    Regarding a frozen account and the "company" has a right not to allow further loans, by "company" do you mean the administrator or her employer?

     

    Thanks.

     

     

    Well you are paying the loan back with after-tax dollars to put money back into a pretax account.


  11. Hello

     

    If you are truly retired I think you can roll it over yourself. Just don't have them send you any money directly. Have the company do the whole thing. I don't think you cn get in trouble. I would suggest you do have a document on file that states when you seperated from service -just in case. Usually if there is a problem with the rollover the receiving

    company will inform you what you need to do.

     

    Hope I understood your question correctly.

     

     

    Tony

    I have serious doubts that this will not take place. You will need someone to sign off on the distribution paperwork from the plan sponsor or TPA. You will save yourself a bunch of hassle by doing this upfront. Sorry for the bad news.


  12. Thanks Guys. My thinking was just to be able to respond if we kind of knew we had something on the horizon. I like the advice about turning off the TV! Presently, my future contributions are going 100% into the fixed account so I am slowly moving towards a more conservative portfolio. Do you agree this is a good way to go about it? T. Rowe Price Small Cap Value is an option in our plan. Love to read the posts and thanks for the ideas -

     

    Bill

     

    I would split up how your monthly is going in monthly for the allocation you desire. ie You are roughly 60% stocks and 40% bonds so I would use the monthly flows to try and maintain that. That way you are dollar costing in throughout the year and if there is a market dislocation you can rebalance using what is in the portfolio.


  13. So, should I be considering to alter my allocation within our 403b because of the potential for our government default on debt? I am 50. Wife is 48. Current allocation is approximately:

     

    38% Fixed at 4.25% for 2011

    20% Vanguard Institutional Index and PrimeCap

    11% Vanguard Mid Cap Index

    12% Fidelity Diversified International

    10% Vanguard Small Cap Index

    3% T. Rowe Price New Era

     

    Still planning to continue to contribute the maximum allowable for the 403b and we also both contribute fully to Roth Ira's.

     

    Bill

     

     

    This is all short-term noise and you should not do anything. The only thing you should be ready to do is rebalance the portfolio if the market moves 10% in either direction.


  14. Hi all!

     

    I have decided to go with ASPire, and I called the company today to gather more info about Vanguard funds. The representative told me that when using a financial planner (which in my case would be through Edward Jones) that person would most likely not assist me since he or she would not get a commission, but if they do help they would charge a fee for their assistance. Since I am new to the entire 403b, do you think it would be okay for me to use a representative now until I find out more about self-directing my account? I also called Vanguard and was able to use online tools and it recommended the "Life Strategy Moderate Growth" however, I was also interested in using the Target plan, because the Vanguard rep said that that one becomes less risky as you age. After deciding the plan, I have to choose funds in which to invest, how do you recommend I go about differentiating between funds? I have another meeting with a different ASPire (through Edward Jones) representative later today.

     

     

    Congratulations on your selection to do it yourself. You have no idea how much money you've saved yourself over your lifetime! Just don't let the Ed Jones person talk you into anything, you know what to do.


  15. Hi Tony!

     

    Thank you for getting back to me. I have met with a representative from Aspire, and he stressed to me that this provider was the lowest cost. However, I wanted to make sure that I was getting a good cost as well as going with a company that is trusted and reliable. I will keep Aspire in mind, but keep my options open as well. Concerning the question of going with an annuity, I thought that was my only option? I was told that I could bypass the annuity by going with an investment company, where my money would go directly to mutual funds. However, I was told the annuity would provide me with more options. I was also told about the ROTH, but I am not interested in doing that just yet. Are there any other options besides those listed?

     

    Also, are there any other educators or people who have 403b accounts, not provider representatives, that can share their experiences and advice? Thank you!

     

     

    Brand New - If you want a very efficient way to get acclimated to invested and not have to do a ton of research please use on of Vanguard's Target Retirement Date funds. On just a rough guess based on your age a fund that anticipate a 2050 retirement date and use Vanguards funds. The ticker is VFIFX.


  16. click here

    For example, how about that brand new 22 year old teacher who insists on a fixed annuity because they are safe and everybody at school tells her that. She saw a presentation that the equity annuity beat the S&P 500 index by a huge margin over the decade that is always shown in these presentation, the famous decade for annuity sales presentations the "lost decade", 1999-2008. How do you convince her that equities are a better option than indexed annuities?

    Or the client who is 66 recently retired and has 100% in equities because "I like being aggressive." "I want to keep growing my money."

     

     

    Steve

     

     

    How well is your fixed annuity doing after inflation over 40 years vs. a properly allocated (and annually rebalanced)portfolio of treasuries and indexed equity funds/etf's? If she "insists" then she's probably not coming to my presentation because her mind is made up. But if she does she can see where her portfolio is vs. where a balanced one is over a 40 year period. I guess the short answer is show a longer time period. The indexed annuity is invested in the same market with more expense-I put the question back on her. 1. No one has beat the market over a 40 year term. The markets are efficient. 2. The annuity is invested in essentially the same securities as an etf or fund but has more expense. Ergo, you won't have more money, you'll have less.

    For the 66 year old-that strategy is easier to argue against given recent events. How did that aggressive portfolio do in 2008? And now that you are retired and need to draw on your diminshed pot of money-how can you draw income and remain as aggressive as you need to be to grow your portfolio so it can last as long as you do? Or simply ask-how much money do you need? If you "need" to be that aggressive why not go to Vegas and place it on Black. You could double your money. The risks are the same. Can you survive the losses? If you're 66 and have saved 750k can you survie on 375k for 25 years? Because we don't know what event may lead to that type of loss. See 2008.

     

     

     

    Mark,

    How do you explain "markets are efficient?" When you say indexed annuity has more expenses, a teacher might show you his or her statement and ask, "I don't see expenses, I see a gain every month. Where are the expenses?" How do you explain what an ETF or a fund? Are any of your clients in a "Lazy Portfolio" type plan?

     

    Your responses have been right on. Why don't you apply to be on Otter's list of recommended fiduciary advisers? http://www.403bwise.com/advisordirectory/directory.html How much do you charge? Do you recieve 12b (1) fees? Do you charge a management fee, one percent, etc? Don't mean to be nosy, but the discussion around here has been that advisers like you cannot make a living unless they sell for an insurance company and make commissions, make transfers to gain more commissions and get more and more clients in annuities. As you know, TSAs are an lucritive money maker for advisers and agents, thats why they are fighting to keep the status quo for years. Is there a life after the 403b gets reformed? What's your experience? Or do you still sell annuities in 403b plans to make a living?

     

    I was shown one of those charts decades ago. I still remember the colored bar chart and saw how much money I would have just by saving $50 or month after 20 years. It was impressive. BTW, this was way before PPT.

    Steve

     

     

    These are very pertinent questions. I would say that this is not being done to run you off because it sounds like you have a good approach you just need to be vetted. Plenty of people will always work with an advisor and we shouldn't run off good ones if they are being truthful.


  17. Getting it outside of the rules/regs of 403b should be your #1 priority. That being said it appears that you still may be employed by the district and may or may not have the option to take that money outside of the rules of 403b. You will need to contact the plan administrator to check to see if they allow for in-service withdrawals.


  18. I too believe in efficient markets but I believe there are a few more exceptions to the rule than their thesis allows. Somehow, someway Bill Gross has done it for an extended period. That is no guarantee he will continue to do it. Warren Buffett has done it for even longer and Warren thinks he could really beat the pants off of the index again invested in individual small caps and/or taking over the companies. But Berkshire Hathaway is too big and all that work "won't move the needle" very much and he has "reloaded his elephant gun" looking for big deals. Is it possible to yes. I'd rather be extremely comfortable owning the indexes and knowing that I will end up in the top 20-25% year in and year out of each category. Thoughts?

     

    Buffett would not say that he could "beat the pants off the index." What he said is that I can beat the averages by about 2%, but not more. I personally think he gets the 2% because of his value orientation and he is on the boards of many of the companies he owns. I heard the 2% from Paul Merriman on Fundadvice podcast (Great podcasts BTW). 2% is significant but it’s all based on past data. Nobody knows what the performance will be going forward. None of us will be a Buffett but I will take his advice when he said for the average investor, index funds are the best choice.

     

    Bigred, when you say that there are exceptions to the efficient market, sure I can agree, but the question always remains: "OK, where, what and who are these exceptions going forward. If you can provide the names of the funds, manager, the exact date and time, I will put the house and the farm in those exceptions!" Of course, its silly, but so many people think they have that right manager or fund and they fail.

    We have only the future and the future is TOTALLY unknown. The exceptions are very clear IN THE PAST with exact dates, prices at the low and high, on the exact hour of the day and year when we can get in exactly and get out exactly. IT’S ALL THERE, and if we knew at that time what we know now, we would either all be billionaires or the stock market would like very different. We all can’t be billionaires. Besides all of that exact and correct data is in the PAST. Stock market data is totally known in the past and totally unknown in the future. Nowhere else in life can you provide an example of contradictory evidence that is so explicit in stock market "data." So, we have to act according, yes its been said before and will be said again and again, by just investing in the board economy via index funds both domestic and internationally, with all the assets classes covered and with an allocation in bonds, rebalance occasionally with low cost funds, never pay commissions, 12b1 fees, back end or front end loads and stay away from annuities in the accumulation stage.

     

    Tony,

    If if were my money, I would never use Bill Gross because his fees are over 1% which are high for a bond fund.

     

     

    Steve,

     

    In regards to the Buffett point, you know the powering of compounding so I would say that you concur that Buffett beating it by 2%/yr would be beating the pants off of it, but that's semantics anyway. That's why I leave that 10-15% of my portfolio in that basic idea and leave the rest to attempting to own a couple of individual stocks that I believe in, ie Berkshire. And really up until 1 year I really felt that was a great idea because Berkshire was not tracked in any of the indexes and I thought that a market cap weighted portfolio was really missing something not owning a company who had a 200B cap. Any additional insight?


  19. This is the stuff that really makes me wonder who reads it and who follows it? Jim Cramer admits he is mostly about the entertainment value and I get that but seriously there are so many flaws with the thinking it makes it impossible to start.


  20. I too believe in efficient markets but I believe there are a few more exceptions to the rule than their thesis allows. Somehow, someway Bill Gross has done it for an extended period. That is no guarantee he will continue to do it. Warren Buffett has done it for even longer and Warren thinks he could really beat the pants off of the index again invested in individual small caps and/or taking over the companies. But Berkshire Hathaway is too big and all that work "won't move the needle" very much and he has "reloaded his elephant gun" looking for big deals. Is it possible to yes. I'd rather be extremely comfortable owning the indexes and knowing that I will end up in the top 20-25% year in and year out of each category. Thoughts?


  21. Steve,

     

    file:///Users/techdpt001/Desktop/Response:%20The%20Safety%20Trap%20(a.k.a.%20My%2052-Point%20Correction%20to%20Lisa%20Gibbs).webarchive

     

    No, Steve, the Money article is NOT an excellent article. It is filled with the same half-truth, shoddy baloney that has been foisted on the reading public for years. Read THIS article.

     

    (If the link does not work, you can find it by googling 'money magazine,'money trap'. Look for the response by Sheryl Moore. This is her '52 point correction to the Lisa Gibbs article')

     

     

    Best,

     

    Herb

     

     

     

    I'm glad to see fear still sells well. If I would ever sell my soul to the devil I think they things would be easy to sell.

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