Letters
AAII’s Top Funds Guide
To the Editor:
You use the term “yield” and spend a paragraph or two explaining how you define the term [in the “Guide to the Top Mutual Funds,” February 2011 AAII Journal]. Yield, to a major corporation, has to do with the earnings over a specific period of time. These earnings are achieved by, primarily, the normal function of the business. Yield defines the success (or failure) of said business based upon its stated operations for the period.
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Does my concept of yield differ from yours? I assume that allotting a column to “yield” means that you consider it important. I know it is important in my understanding of the stock market.
Robert C. Campbell
The Editor Responds:
The yield information presented in our Top Funds Guide differs from the equation used to analyze the success (or failure) of a business.
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Discussion
Re: AAII Journal, Feb 2011. "The primary advantage a MF can give you over
an ETF, of course, is active management." From Table 4, Performance of the 50 Most Widely Held Funds, I see that in 2010 only 16 of the 50, or 32%, beat or matched the S&P 500. My conclusion is that paying MFs for this kind of "active management" is not desirable. ETFs or index funds can do better!
Roger Grossel
posted about 1 year ago by Roger from Florida
In the sidebar to "How to Check Out a Financial Advisor" you state that "...Certified Public Accountants are tax specialists..." While some CPAs are tax experts, there are more that are not. Like many professions, CPAs specialize in many areas including auditing, forensic accounting, tax or personal financial planning to name just a few. While I am a CPA, I am not the person to ask about taxes. You have painted my profession with a very narrow brush.
posted about 1 year ago by Mark from Iowa
Is utilizing a loan from a 401 k to pay off a HELOC at current interest rates an acceptable strategy if you guarantee paying the money back with a fixed rate of return of 5%? Any comments would be helpful!
posted about 1 year ago by Rafael from Florida
