Comments on: 6 Investing Myths http://financialhighway.com/6-investing-myths/ Personal finance blog discussing investments, savings, insurance and financial planning ideas to grow wealth Wed, 08 Feb 2012 02:23:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chase http://financialhighway.com/6-investing-myths/#comment-2443 Chase Tue, 02 Feb 2010 01:42:06 +0000 http://financialhighway.com/?p=3302#comment-2443 After reading "The Little Book of Common Sense Investing" and seeing that over a 50 year run, only a handful of mutual funds have beaten the 500 index - I'm talking like 5 out of 4000 - I have sworn of actively managed funds altogether. Why put my money in someone else's pocket when I don't need to? After reading “The Little Book of Common Sense Investing” and seeing that over a 50 year run, only a handful of mutual funds have beaten the 500 index – I’m talking like 5 out of 4000 – I have sworn of actively managed funds altogether. Why put my money in someone else’s pocket when I don’t need to?

]]> By: Scott http://financialhighway.com/6-investing-myths/#comment-2425 Scott Mon, 01 Feb 2010 06:50:25 +0000 http://financialhighway.com/?p=3302#comment-2425 I totally agree with your comments on mutual funds. There is a mountain of data which indicates a low cost index fund will outperforms the majority of actively managed funds. What I cannot understand is why so many people chase the latest hot performing mutual fund only to end up worse off than if they would have parked their money in a boring index fund? Maybe a better financial education in our schools would help... I totally agree with your comments on mutual funds. There is a mountain of data which indicates a low cost index fund will outperforms the majority of actively managed funds.

What I cannot understand is why so many people chase the latest hot performing mutual fund only to end up worse off than if they would have parked their money in a boring index fund?

Maybe a better financial education in our schools would help…

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]]> By: Daniel http://financialhighway.com/6-investing-myths/#comment-1984 Daniel Mon, 07 Dec 2009 18:32:31 +0000 http://financialhighway.com/?p=3302#comment-1984 Selecting as many funds as possible isn't diversification. Then you get overlapping investments and you've done exactly the opposite of what your goal was. Selecting as many funds as possible isn’t diversification. Then you get overlapping investments and you’ve done exactly the opposite of what your goal was.

]]> By: Ray http://financialhighway.com/6-investing-myths/#comment-1983 Ray Mon, 07 Dec 2009 15:06:58 +0000 http://financialhighway.com/?p=3302#comment-1983 @Daniel good one! I am trying to explain that to a friend of my right now. @Ken I agree diversification is a must for a proper investment portfolio, however I was referring to over-diversification and random diversification, often when I talk to people about this they tell me how much they have diversified by randomly selecting funds and stocks. @Daniel good one! I am trying to explain that to a friend of my right now.

@Ken I agree diversification is a must for a proper investment portfolio, however I was referring to over-diversification and random diversification, often when I talk to people about this they tell me how much they have diversified by randomly selecting funds and stocks.

]]> By: Ken http://financialhighway.com/6-investing-myths/#comment-1982 Ken Mon, 07 Dec 2009 14:20:52 +0000 http://financialhighway.com/?p=3302#comment-1982 I must say that diversification does work. I think that having 3 or 4 mutual funds: 25% Internationsl, 25% Growth, 25%Income, 25% Small Cap can help someone through the ups and downs of the market. I must say that diversification does work. I think that having 3 or 4 mutual funds: 25% Internationsl, 25% Growth, 25%Income, 25% Small Cap can help someone through the ups and downs of the market.

]]> By: Daniel http://financialhighway.com/6-investing-myths/#comment-1981 Daniel Mon, 07 Dec 2009 14:08:26 +0000 http://financialhighway.com/?p=3302#comment-1981 Buying a house is the best investment you can make? I heard a story recently about someone who bought a house for $50,000 and 35 years later, it was worth $200,000. They were very proud of themselves, but what they didn't realize is that their return on investment was only about 4%! I'm a huge proponent of index funds. While some people may be able to beat the indexes, the average person is better off saving their money by paying low fees and getting a solid rate of return. Buying a house is the best investment you can make?

I heard a story recently about someone who bought a house for $50,000 and 35 years later, it was worth $200,000. They were very proud of themselves, but what they didn’t realize is that their return on investment was only about 4%!

I’m a huge proponent of index funds. While some people may be able to beat the indexes, the average person is better off saving their money by paying low fees and getting a solid rate of return.

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