Comments on: The Doofus Decade Ahead for Mutual Fund Investors http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/ A personal finance blog where we share insights on carefully saving money, investing, early retirement, mortgages, stocks because the little things matter in achieving financial freedom! Sat, 21 Nov 2009 10:57:14 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Neal Frankle http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14022 Neal Frankle Tue, 24 Feb 2009 21:39:59 +0000 http://moneyning.com/?p=2355#comment-14022 Great comments here. EPIC, your analogies really hit home. Great comments here. EPIC, your analogies really hit home.

]]> By: epicview http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14020 epicview Tue, 24 Feb 2009 19:02:43 +0000 http://moneyning.com/?p=2355#comment-14020 Your right on the money! Now, at the bottom of the market, everyone is panicking and disavowing stocks. The discussion at Frugaldad is whether it was better to take the money you would be putting in your 401/IRA and paying off your mortgate with it instead. But, the market is not designed to allow you to retire in 5 years, but in 35 years. Still, then you have the comment by @almost_there and you wonder if all the rules that you've been taught have changed. Its like trying to drive a car while looking a mile ahead down the road. Its fine when the road is straight. But when the rules change and you hit curves, it becomes almost impossible to figure out what the right move is. Your right on the money! Now, at the bottom of the market, everyone is panicking and disavowing stocks. The discussion at Frugaldad is whether it was better to take the money you would be putting in your 401/IRA and paying off your mortgate with it instead. But, the market is not designed to allow you to retire in 5 years, but in 35 years. Still, then you have the comment by @almost_there and you wonder if all the rules that you’ve been taught have changed. Its like trying to drive a car while looking a mile ahead down the road. Its fine when the road is straight. But when the rules change and you hit curves, it becomes almost impossible to figure out what the right move is.

]]> By: My Life ROI http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14019 My Life ROI Tue, 24 Feb 2009 18:57:37 +0000 http://moneyning.com/?p=2355#comment-14019 Good outlook. I remember when I first started investing and I would look at items 10 year growth to determine which had a better track record. Oh how times have changed... I would bet a lot of people do that, though, so this is a very valuable post! Good outlook. I remember when I first started investing and I would look at items 10 year growth to determine which had a better track record.

Oh how times have changed…

I would bet a lot of people do that, though, so this is a very valuable post!

]]> By: Neal Frankle http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14012 Neal Frankle Tue, 24 Feb 2009 18:26:05 +0000 http://moneyning.com/?p=2355#comment-14012 Great questions/posts. What I was trying to say is that no matter how the market does, if you base your decisions on the Morningstar reports (which show 10year averages) you'll feel like a doofus because the funds will show negative returns. I don't in any way suggest that you shouldn't be investing...its just that the world is going to tell you not to. Great questions/posts.

What I was trying to say is that no matter how the market does, if you base your decisions on the Morningstar reports (which show 10year averages) you’ll feel like a doofus because the funds will show negative returns. I don’t in any way suggest that you shouldn’t be investing…its just that the world is going to tell you not to.

]]> By: Epicview http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14011 Epicview Tue, 24 Feb 2009 17:56:52 +0000 http://moneyning.com/?p=2355#comment-14011 Lol! I was just asking this question over at Frugaldad.com. You've provide a-lot of the answers. Statistically, as a rule, the stock market should do alright in 10-30 years. What everyone is wondering now, is have all the rules changed? Here was my post at Frugaldad. Now, more than ever, when everybody is panicking and stopping their IRA/401 contributions and selling off their stocks, I wonder if dollar cost averaging really works! Here’s a question. If you bought your house at the top of the market for $300,000 and now its only worth $200,000 then it looks like a bad financial decision at first glance. Particularly if you had to sell it at the bottom. Fast forward ten years and the house is now worth $500,000 and now it looks like a good decision. Isn’t the stock market the same way? It only returns in 10, 20, 30 years. There will be dips in between. If you follow the latest fads and buy the hottest home building stocks, then sell and buy the hottest bank stocks, etc. then you run a huge risk. Stick to an index fund and leave it alone for ten years and, like the house, you should do alright. I wish I had a crystal ball to see how my 401 will look if I leave it alone for 5-10 years! Any thoughts on this? Lol! I was just asking this question over at Frugaldad.com. You’ve provide a-lot of the answers. Statistically, as a rule, the stock market should do alright in 10-30 years. What everyone is wondering now, is have all the rules changed? Here was my post at Frugaldad.

Now, more than ever, when everybody is panicking and stopping their IRA/401 contributions and selling off their stocks, I wonder if dollar cost averaging really works!

Here’s a question. If you bought your house at the top of the market for $300,000 and now its only worth $200,000 then it looks like a bad financial decision at first glance. Particularly if you had to sell it at the bottom. Fast forward ten years and the house is now worth $500,000 and now it looks like a good decision.

Isn’t the stock market the same way? It only returns in 10, 20, 30 years. There will be dips in between. If you follow the latest fads and buy the hottest home building stocks, then sell and buy the hottest bank stocks, etc. then you run a huge risk. Stick to an index fund and leave it alone for ten years and, like the house, you should do alright.

I wish I had a crystal ball to see how my 401 will look if I leave it alone for 5-10 years! Any thoughts on this?

]]> By: Matt @ StupidCents http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14010 Matt @ StupidCents Tue, 24 Feb 2009 16:46:51 +0000 http://moneyning.com/?p=2355#comment-14010 I'm very optimistic with the funds I currently hold. Yes, they've lost value, but still ahead of their peers for the most part. Doofus or not, I think now is a great opportunity add to your investments for the long-term. I’m very optimistic with the funds I currently hold. Yes, they’ve lost value, but still ahead of their peers for the most part. Doofus or not, I think now is a great opportunity add to your investments for the long-term.

]]> By: FFB http://moneyning.com/investing/the-doofus-decade-ahead-for-mutual-fund-investors/comment-page-1/#comment-14008 FFB Tue, 24 Feb 2009 15:09:04 +0000 http://moneyning.com/?p=2355#comment-14008 I'm thinking this is the doofus age because it doesn't take much thought to make a long-term killing now. If you can invest in broad indexed funds now, when they are their lowest in years, then you will see some great returns over the next ten+ years (well, I really hope so). Stocks are cheap now. Not that you should go play around and speculate but if you have a long-term view you can get in on the market while prices are lower than they have been in a looong time. I’m thinking this is the doofus age because it doesn’t take much thought to make a long-term killing now. If you can invest in broad indexed funds now, when they are their lowest in years, then you will see some great returns over the next ten+ years (well, I really hope so).

Stocks are cheap now. Not that you should go play around and speculate but if you have a long-term view you can get in on the market while prices are lower than they have been in a looong time.

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