Comparing Mutual Funds to ETFs

Comments on “The Individual Investor’s Guide to the Top Mutual Funds 2018,” in the February 2018 AAII Journal:

The 2018 report on mutual funds is the most complete report on the subject I have ever seen. In total, it is a complete educational course of study.
—Keith Harner from South Dakota

I would like to see AAII publish an article on the relative performance of exchange-traded products versus mutual funds.

I thought I heard Vanguard founder John Bogle recently state that mutual funds were outperforming their exchange-traded counter parts. However, I have not seen any analysis of this. The AAII ETF and mutual fund guides are published at different time frames, making such a comparison difficult.
—J. Morlock from New Jersey

Risk-Taking Based on Portfolio Size

Comments on “Insights on Using the 4% Withdrawal Rule From Its Creator,” by William Bengen, in the January 2018 AAII Journal:

I was pleased to read the January 2018 AAII Journal interview with William Bengen concerning an optimum rate of withdrawal from a portfolio during retirement.

Over the years, the AAII Journal has published articles of a similar nature. What is missing from most of those is an assessment of risk based upon portfolio size. Stated simply, those investors who have larger portfolios can afford to take more risk.

For retired investors with a portfolio larger than $1 million, I would suggest a more aggressive investment portfolio. I would recommend a three-year cash “buffer” to deal with market downturns. Beyond that, perhaps we could get by with only one cruise each year instead of two.

If we are fortunate to live long, the money may begin piling up. That is the time to start thinking about expanding our charitable contributions.
—Jeffrey Loesch, AAII Life Member