July Letters to the Editor – Members comment on John Bogle’s advice, the PEG ratio, covered calls and estate planning
Posted on July 30, 2014 | AAII Journal
Mr. Bogle has a very sound knowledge about investing. I am very fortunate to have my 401(k) plan through Vanguard. My plan offers both index funds and active funds as options. Although my investments are mostly in index funds, I also use a couple of active funds to balance out my portfolio. Although the index funds have lower expenses, the two active funds I use have expense ratios of approximately 0.35% to 0.45%, which is still very inexpensive. I feel that a mix of index and active funds will give me a greater chance for investment success. Of course, other fund companies charge much more than Vanguard and that could make a major difference in returns!
—Jerry Durham from Tennessee
A really great article. How can I save it for my grandchildren?
Shortly after I retired 11 years ago, I did a long calculation on my 43 years of stock market performance and I just matched the Dow Jones industrial average. I could have saved eight to 10 hours a week with an index fund (22,360 hours by 2003). The moral of the story is that unless you are in the market more for kicks than profits, you should be in index funds.
—Homer Milford from New Mexico
Charles Rotblut responds:
Near the top of every Journal article, on the left-hand side, is a section labeled “Share this article.” Below it are options to email a link to the article or to share it on social media websites such as Facebook. If you want to save a copy of the article, click on “Download printable PDF” just above under the heading “Print this article.”
Supreme Court: No Bankruptcy Protection for Inherited IRAs
Posted on July 29, 2014 | AAII Journal
Inherited IRAs do not qualify for the same protections under the bankruptcy code as other types of IRAs do.
The Role of Luck and Skill in Investing
Posted on July 25, 2014 | AAII Journal
Since luck plays a bigger role than skill in influencing investment returns, investors need to focus on their portfolio management process.
“Market Wizards” Advice: Doing the Uncomfortable Thing
Posted on July 24, 2014 | AAII Journal
Basing trading decisions on what feels emotionally satisfying often leads to the worst portfolio performance.
Five Common Traits of Successful Value Screens
Posted on July 22, 2014 | AAII Journal
Though investing gurus differ in what they look for in a stock, there are five common traits we see across the AAII value-oriented screens.
The Right Type of Life Insurance for Your Estate Planning Needs
Posted on July 15, 2014 | AAII Journal
Life insurance works well for estate planning because of when benefits are paid and the ability to create wealth for heirs outside of the estate.
Valuation Ratios: The PEG Ratio
Posted on July 8, 2014 | AAII Journal
The PEG ratio factors in a company’s growth into its valuation, allowing investors to compare companies with different rates of growth.
Posted on July 6, 2014 | AAII Journal
John Bogle and Jack Schwager are two names not commonly mentioned in the same sentence. John Bogle started a mutual fund company to offer index funds in 1975 when nobody thought the idea would work. Today, Vanguard is one of the largest fund companies in the world. Jack Schwager interviewed several top traders and wrote about his conversations in 1989. His book, “Market Wizards,” became a bestseller and sits on my bookshelf at home. (Yes, I know John Bogle goes by “Jack,” but to avoid confusion here, I’ll use “John” to refer to him.)
Which IRA Should You Contribute to and When?
Posted on July 3, 2014 | AAII Journal
Contributing to a Roth IRA early in a tax year results in the greatest ending wealth.
Avoiding Probate Through Account Titling
Posted on July 1, 2014 | AAII Journal
Joint ownership can make transferring assets at death easy, though the three types have implications that must be thought through.