Comments on: 8 Rules for Selecting Actively Managed Mutual Funds /2008/08/25/8-rules-for-selecting-actively-managed-mutual-funds/ A personal finance blog of a young adult's journey from entry-level to financial independence Tue, 29 Jun 2010 07:15:36 -0700 https://wordpress.org/?v=2.8 hourly 1 By: pfstartupblog /2008/08/25/8-rules-for-selecting-actively-managed-mutual-funds/comment-page-1/#comment-18 pfstartupblog Tue, 26 Aug 2008 02:45:47 +0000 https://pfstartupblog.wordpress.com/?p=124#comment-18 Paul, I was by no means trying to say Bogle prefers actively managed mutual funds over index funds. In fact, he beats you over the head over and over again with stats that show the superiority of index funds over actively managed mutual funds. There is a group of people who believe actively managed mutual funds will provide superior returns and these 8 rules are to help those people decide which funds to invest in. Part of the value of some index funds is that they are tax efficient. Saying that you should not keep indexes in tax deferred accounts is not always true. There are some investment choices that are even more tax efficient than index funds like tax-exempt money market accounts and tax-exempt bonds. Not all index funds are tax efficient, however, you have to evaluate the turnover rate. But in general, index funds are more tax-exempt than most other options like REITs and some bonds. Thanks for the comment and I hope to see you back on my site! Paul,

I was by no means trying to say Bogle prefers actively managed mutual funds over index funds. In fact, he beats you over the head over and over again with stats that show the superiority of index funds over actively managed mutual funds. There is a group of people who believe actively managed mutual funds will provide superior returns and these 8 rules are to help those people decide which funds to invest in.

Part of the value of some index funds is that they are tax efficient. Saying that you should not keep indexes in tax deferred accounts is not always true. There are some investment choices that are even more tax efficient than index funds like tax-exempt money market accounts and tax-exempt bonds. Not all index funds are tax efficient, however, you have to evaluate the turnover rate. But in general, index funds are more tax-exempt than most other options like REITs and some bonds.

Thanks for the comment and I hope to see you back on my site!

]]> By: retirementwithaplan /2008/08/25/8-rules-for-selecting-actively-managed-mutual-funds/comment-page-1/#comment-17 retirementwithaplan Mon, 25 Aug 2008 23:29:35 +0000 https://pfstartupblog.wordpress.com/?p=124#comment-17 Read Bogle, buy index funds. He has only one rule and numerous arguments as to why indexing is best. I just finished my fourth book, this one the subject of mutual funds and there are numerous ways to profit from active funds. Did you know that because of their tax advantages, you should not keep indexes in tax deferred accounts? So long-range plans such as 401(k)s are prime places for active funds. Best, Paul Petillo Managing Editor/BlueCollarDollar.com https://bluecollardollar.com https://retirementwithaplan.wordpress.com Read Bogle, buy index funds. He has only one rule and numerous arguments as to why indexing is best. I just finished my fourth book, this one the subject of mutual funds and there are numerous ways to profit from active funds.

Did you know that because of their tax advantages, you should not keep indexes in tax deferred accounts? So long-range plans such as 401(k)s are prime places for active funds.

Best,

Paul Petillo
Managing Editor/BlueCollarDollar.com
https://bluecollardollar.com
https://retirementwithaplan.wordpress.com

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