Comments on: How to Take the Emotion Out of Investing: Index! http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: » Weekly Blog Roundup » Consumerism Commentary: A Blog About Personal Finance http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5758 » Weekly Blog Roundup » Consumerism Commentary: A Blog About Personal Finance Sun, 28 May 2006 04:43:24 +0000 http://allthingsfinancialblog.com/?p=763#comment-5758 [...] JLP from AllFinancialMatters looks to index investing for taking the emotion out of investing. [...] [...] JLP from AllFinancialMatters looks to index investing for taking the emotion out of investing. [...]

]]> By: Tim MMF http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5552 Tim MMF Fri, 26 May 2006 09:37:14 +0000 http://allthingsfinancialblog.com/?p=763#comment-5552 Oh dang, I looked at the 4.72% number for the S&P! Not the 8.04%...my bad. You're right then your portfolio is doing pretty well. [goes to corner, puts on dunce cap] Oh dang, I looked at the 4.72% number for the S&P! Not the 8.04%…my bad. You’re right then your portfolio is doing pretty well. [goes to corner, puts on dunce cap]

]]> By: frugal http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5542 frugal Thu, 25 May 2006 21:54:14 +0000 http://allthingsfinancialblog.com/?p=763#comment-5542 Beat by 2% more is relatively significant. 2% out of 8% is 25% better, or any other way that you want to calculate it. I actually would say that putting money in a high-yield account in the long term is guaranteed to lose money to inflation (& tax). Doing investing may not always work out, but at least you have a chance. Beat by 2% more is relatively significant. 2% out of 8% is 25% better, or any other way that you want to calculate it. I actually would say that putting money in a high-yield account in the long term is guaranteed to lose money to inflation (& tax). Doing investing may not always work out, but at least you have a chance.

]]> By: JLP http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5533 JLP Thu, 25 May 2006 16:26:37 +0000 http://allthingsfinancialblog.com/?p=763#comment-5533 Tim, Barely? I wouldn't say 2% more (after fees) is barely beating a high-yeild account. Over the long run, that 2% difference could mean hundreds of thousands of more dollars in the account. The portfolio I showed is not even a year old yet. Its anniversary date is June 13. Over the long-run I would much rather be in stocks than in a high-yeild account. Tim,

Barely? I wouldn’t say 2% more (after fees) is barely beating a high-yeild account. Over the long run, that 2% difference could mean hundreds of thousands of more dollars in the account.

The portfolio I showed is not even a year old yet. Its anniversary date is June 13. Over the long-run I would much rather be in stocks than in a high-yeild account.

]]> By: Tim MMF http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5532 Tim MMF Thu, 25 May 2006 16:21:09 +0000 http://allthingsfinancialblog.com/?p=763#comment-5532 Hmm...that may be true but the portfolio you showed barely did better than a high yield savings account and you're going to have to pay taxes on that eventually, right? The savings account has the benefit of being more stable. How many years is that annualized over? Hmm…that may be true but the portfolio you showed barely did better than a high yield savings account and you’re going to have to pay taxes on that eventually, right? The savings account has the benefit of being more stable. How many years is that annualized over?

]]> By: JLP http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5343 JLP Wed, 24 May 2006 18:22:07 +0000 http://allthingsfinancialblog.com/?p=763#comment-5343 Tim said: <i>Actually if you put your money into a high yield savings account you’re almost sure to beat inflation unless something crazy happens.</i> I don't think this is true due to the impact of taxes. Tim said:

Actually if you put your money into a high yield savings account you’re almost sure to beat inflation unless something crazy happens.

I don’t think this is true due to the impact of taxes.

]]> By: Tim MMF http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5342 Tim MMF Wed, 24 May 2006 18:06:04 +0000 http://allthingsfinancialblog.com/?p=763#comment-5342 Actually if you put your money into a high yield savings account you're almost sure to beat inflation unless something crazy happens. But indexing all your money is simply a sure way to be average. You're at the complete whim of the market. For better or worse. Actually if you put your money into a high yield savings account you’re almost sure to beat inflation unless something crazy happens. But indexing all your money is simply a sure way to be average. You’re at the complete whim of the market. For better or worse.

]]> By: Vladimir Stojanovski http://allfinancialmatters.com/2006/05/24/how-to-take-the-emotion-out-of-investing-index/comment-page-1/#comment-5341 Vladimir Stojanovski Wed, 24 May 2006 17:51:05 +0000 http://allthingsfinancialblog.com/?p=763#comment-5341 I am sooooo glad I did not own any index funds that follow the S&P 500 over the last 3-4 years. What a dud! Everything did better then this most widely held index. Not to say I have anything against indexing, but I think one can do better with semi-active portfolio management. (By semi-active, I mean responding to macro-economic indicators every 4-6 months, or 2-3 times a year.) Of course, there are plenty of indexes to choose from, whether you like minerals and natural resources or international small cap growth stocks. I am sooooo glad I did not own any index funds that follow the S&P 500 over the last 3-4 years. What a dud! Everything did better then this most widely held index. Not to say I have anything against indexing, but I think one can do better with semi-active portfolio management. (By semi-active, I mean responding to macro-economic indicators every 4-6 months, or 2-3 times a year.) Of course, there are plenty of indexes to choose from, whether you like minerals and natural resources or international small cap growth stocks.

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