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(Marketwatch)   Could your retirement plan be cheaper? Yes. Will your retirement plan be cheaper? No   (blogs.marketwatch.com) divider line 14
    More: Obvious, index funds, ETF, mutual funds  
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1555 clicks; posted to Business » on 06 Jan 2013 at 5:31 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



14 Comments   (+0 »)
   
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2013-01-06 05:44:34 PM  
I'd thought it was well known that the returns of an index fund easily outpaced the returns minus fees of any actively-managed fund; unless it's being managed by some absolute demigod of finance, in which case the fund would already be filled and closed to the common investor, and catering to the big leagues.
 
2013-01-06 05:49:18 PM  
The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...
 
2013-01-06 05:55:56 PM  
Wait, something could be cheaper than a cardboard box under a bridge? 'Cause that's where I'm headed.

Your newsletter, please add me to the subscription list.
 
2013-01-06 06:01:25 PM  

natewill: The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...


ENGLISH MOTHERFARKER, DO YOU SPEAK IT????
 
2013-01-06 06:09:37 PM  

natewill: The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...


Came to say this.
 
2013-01-06 06:32:53 PM  
People who spend less time shopping for a retirement investment plan than they do a new car deserve to get fleeced.
 
2013-01-06 06:39:51 PM  
My employer has been switching to index funds steadly since last year for its 401k stock options. I'm OK with that.
 
2013-01-06 07:31:03 PM  

natewill: The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...


I fell asleep two sentences into this.
 
2013-01-06 08:06:48 PM  
I typically pick low-cost index funds, and am generally lucky with my work choices.

The one place I have crap options is under my work's latest HSA. I could transfer money out of there, but it's not a huge amount. It has a bog-standard S&P 500 index fund. With a net expense ratio of something like .65% (.05-.20% are reasonable... anything over half-a-percent for a basic S&P 500 index is highway robbery). I still haven't decided but I'm vaguely tempted to put my funds in one of the cheaper managed funds (at .85%-ish) mostly because I don't want to reward some jackwagon for putting a .65% index fund on the market.
 
2013-01-06 08:35:48 PM  

natewill: The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...


You should submit to the Journal of Experimental Economics. You sound just like most of the papers.

/And make about as much sense.
//Sokol picked the low-lying fruit, but it's long since time for someone to repeat his experiment on some new subjects.
 
2013-01-06 10:51:37 PM  

Fizpez: natewill: The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...

ENGLISH MOTHERFARKER, DO YOU SPEAK IT????


Wh-what?
 
2013-01-07 07:40:40 AM  

natewill: The main issue with retirement-deferred funding options is that the defenestration of options market deregulation is sure put an undue burden on inter-corporation transferrals, specifically with CMO compliance. If the IRS would actually mitigate the renewals exchange, like they said they would just after the Amman Financial Market Agreement, then a lot of the fund reconciliation headache would be gone. Then, of course retirement plans would be cheaper. Duh! And then there's the next hurdle of automatically adjusting cost-basis agents...


Word.
 
2013-01-07 08:10:15 AM  
The commonly-cited stat is that 80% of actively-managed funds don't beat the indices. But all that really means is there are a shiat-load of shiat funds out there. Using Morningstar, Fund-o-Matic and some other resources, its not hard to find funds that regularly beat the market after costs.
 
2013-01-08 01:12:33 PM  

Milo Minderbinder: The commonly-cited stat is that 80% of actively-managed funds don't beat the indices. But all that really means is there are a shiat-load of shiat funds out there. Using Morningstar, Fund-o-Matic and some other resources, its not hard to find funds that regularly beat the market after costs.


No.

It's not hard to find funds that have in the past regularly beat the market after costs.

Problem is finding ones that will continue to do so in the future. Morningstar themselves say that their star ratings have ZERO predictive power. Study after study has been done showing that there is no correlation between funds that have done well and funds that will do well... in other words the percentage of funds that continue a winning streak is what one would expect from random chance.
 
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