Investing: with goal of financial freedom in mind

[k81689]

Originally Posted by bbnetworking

if you really want financial freedom, you should spend some time "READ" and "LEARN". Invest in yourself.

After you done that with hard work, you will learn that got paid to work for someone else is the best financial freedom.

[mysticaltyger]

Originally Posted by bUU

Let me dig into this a bit, playing devil's advocate.

If I have a fund XXYYZ that I chose based on both quality criteria and investing objective, and my knowledge of assessment of quality improves, should I hold the fund if a reevaluation indicates that AABBC is a better fund? Keep in mind that we're talking about no-load mutual funds, with no transaction fees.

Well I did recommend top notch funds for this well diversified category. But assuming the fund underperformed for several years running (at least 3 straight years of below average returns), or had a lot of sudden management changes, then, yes.

But for the funds I recommended, management has historically been stable and transitions well managed; costs range from below average to very low; performance is consistently above average, often beating the S&P 500 stock index over long periods, or at least coming close, and doing so with less volatility.

But yes, there can always be an exception. Nothing is 100%.

[mysticaltyger]

Originally Posted by bUU

Yup, I agree. Trading one MF for another MF, because it better serves the reason you bought the original MF in the first place just doesn't follow those same rules.

I don't remember where I read it, but the average investor only holds a mutual fund for 3 or 4 years before switching. Average investors also typically get returns that are not as good as the published returns because they switch at inopportune times. I'm oh so sure that's not the case for you or anyone on this board ....but for those other mere mortals out there, holding a good fund for a long time (think a decade, not 3 or 4 years) usually results in better returns.

[bUU]

Basing MF choices on past returns isn't smart. And holding a fund instead of achieving a specific investing objective with a different fund that pursues that objective better doesn't make sense. :shrug:

[mysticaltyger]

Originally Posted by bUU

Basing MF choices on past returns isn't smart. And holding a fund instead of achieving a specific investing objective with a different fund that pursues that objective better doesn't make sense. :shrug:

My selections weren't based JUST on past returns. You're picking and choosing the pieces you like just because you enjoy nitpicking and arguing. As far as objective so, balanced funds meet most people's objective most of the time. I can't really offer more specific advice than that on an internet forum.