• Letters to the Editor
  • Letters

    Letters Splash image

    Coverage of Funds

    Regarding “The Individual Investor’s Guide to the Top Mutual Funds 2014,” by AAII staff, in the February 2014 AAII Journal.

    I would be interested in closed-end fund cove

    —Jane Gabrilove from Colorado

    Charles Rotblut responds:

    We publish an annual ETF Guide in the August AAII Journal. All of our guides can be accessed on AAII.com by clicking on the Getting Started tab and then Investor Guides.

    For closed-end fund information, I suggest going to the Closed-End Fund Association’s website (www.cefa.com). They have a lot of information and a good screener.

    SPECIAL OFFER: Get AAII membership FREE for 30 days!

    Evaluating Technical Trends

    Comments posted to “To Trend or Not to Trend,” by Ray Rondeau, in the January 2014 AAII Journal.

    This is a great article combining tech analysis and fundamental analysis with a big portion of reality. I hope to read more articles like this in the near future.

    —Ivan Orozco from Florida

    I thought Mr. Rondeau’s approach was very helpful. I have spent a lot of time studying fundamentals and picking stocks, only to watch the market go the other way. That left me poorer and more confused. Mr. Rondeau shows a good way to reduce those occurrences. Thanks.

    —Phil Edwards from Florida

    Managing Life Insurance Policies

    Comment posted to “Life Insurance Cash Value: A Practical Discussion,” by Peter Katt, in the January 2014 AAII Journal.

    In consulting and selling life insurance for 45 years, and managing agencies and teaching many individuals the business, I believe that there is a place for that whole life policy in my portfolio and a place for the policy on my wife’s life. We will always need the liquidity. At ages 87 and 84 we have done well and live well. The key is discipline! Buy term when you have a high risk, convert some of it as it grows and invest all along. Let the cash value be a bond portion and buy value

    —Charlie Wadhams from California

    Pros and Cons of Long-Term Care Insurance

    Comments posted to “Long-Term Care of Your Personal Finances,” by Christine S. Fahlund, in the January 2014 AAII Journal.

    This is the first long-term care LTC article I have read in a long time that notes the importance of a non-forfeiture feature such as reduced paid up or extended-term (both features I have). In the event of large rate increases or inability to pay for premiums after many years of payment, this is a wise “protective feature.” Non-forfeiture allows you to continue coverage without further payment of premiums at the very time you need th

    — Paul from Connecticut

    I am a professional actuary, a fellow of the Society of Actuaries, and I developed LTC policies from 1989 to 1993. If these policies have a loss ratio of 65% and there is a 70% chance that you will file a claim, it makes no sense to buy a policy.

    Better to save the money in an IRA, invest in 60% stocks/40% bonds, and get the tax-deferral benefits and appreciation over 20 years on all your money, not just 65%. Further, if you need assisted living and private caregivers, instead of relying on long-term care insurance, you can spend your money as you need to and not argue with some insurance company about definitions and coverage. A lot of home health care and hospice is covered by Medicare.

    —Harry Ploss from Texas


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