I will also agree with you that investing in a fund is a WHOLE LOT simpler than trying to do something yourself. I’m not going to argue with you on that.

I am not going to argue that you MIGHT have (you have to check to be sure because you can’t just count on it) a diversified portfolio. But most likely you don’t.

Sure you can argue that some are in financial stocks and some are in other types of stocks but it is still ALL stocks which makes you very vulnerable when markets behave like they have done for the last 1 – 1.5 years.

What I am trying to say is that if you feel that investing in a mutual fund is the right thing for you to do then please go ahead. All I am saying is that you’ll make a lot less money than you could and you’ll be more vulnerable than if you learned how to invest like the rich instead of passively relying on someone (that are not rich) managing your money for you.

The important part is that you are happy with the solution you choose.

Personally I will rather want to learn how the rich manages money instead of doing what all the “regular” people are doing.

But if you can find someone that did indeed become rich by investing in a mutual fund please let me know because then I am definitely wrong (and I don’t mean the people running the fund *LOL*).

Thanks,
Mikael

With respect, I must disagree to some extent with your comments about putting money away in a retirement fund.

I don’t know what the situation is in other states, but in my home country of Australia, any earnings which accumulate in your superannuation (retirement) account are taxed at a much lower rate (I think around ten per cent) than what they would be if you invested them yourself (which depends on your income, but I think the top rate is now about forty percent – don’t quote me on that though), so at least in Australia, a superannuation account is by far a more efficient way to build up a retirement nest egg from a tax perspective than investing money yourself.

Plus, by investing with a fund is a much simpler process and can provide important benefits from the point of view of diversification as well.

Not to discredit your (legitimate) points, but managed funds do have their advantages.

Mikael