401k dividends

[upschuck]

I was scratching my head over your two seemingly contradictory comments that were in the post.

 

[Catatonic]

I was scratching my head over your two seemingly contradictory comments that were in the post.

I don't understand the contradiction:
I said Mutual Funds are notorious for hidden costs
and
They are often only mentioned in small print buried somewhere in the prospectus or summary.

This is an example of the Teamster BH 2030 fund where it is hinted or alludes to these hidden costs:
There may be additional Plan fees and expenses that participants will bear that are not reflected in fund performance.

 

[oldngray]

I don't understand the contradiction:
I said Mutual Funds are notorious for hidden costs
and
They are often only mentioned in small print buried somewhere in the prospectus or summary.

This is an example of the Teamster BH 2030 fund where it is hinted or alludes to these hidden costs:
There may be additional Plan fees and expenses that participants will bear that are not reflected in fund performance.

Those fees come off the top from reported yield instead of at the bottom as a cost don't they?

 

[Catatonic]

Those fees come off the top from reported yield instead of at the bottom as a cost don't they?

Yep ... therefore "hidden" expenses.

Again, I want to state that the BH funds are good investment vehicles!
Don't change because of this discussion.

 

[upschuck]

Are you being obstinate again?

I don't understand the contradiction:
I said Mutual Funds are notorious for hidden costs
and
They are often only mentioned in small print buried somewhere in the prospectus or summary.

Then the next quote has you saying

If you say so.
I have never seen the "hidden costs" described in any statement.

 

[Catatonic]

Are you being obstinate again?


Then the next quote has you saying

OK, if that makes you feel better.

 

[Jones]

Yep ... therefore "hidden" expenses.

Again, I want to state that the BH funds are good investment vehicles!
Don't change because of this discussion.

Eh, I would say that they are good in the sense that they are better than putting your money in a sock or not saving at all, but compared to the other options that we have available in our 401K they are a poor choice.

 

[Catatonic]

Eh, I would say that they are good in the sense that they are better than putting your money in a sock or not saving at all, but compared to the other options that we have available in our 401K they are a poor choice.

Which I said about 50 posts back and caused all the discussion about ETF Targeted funds and "hidden" costs inherent in Mutual Funds.
If one wants to just select a simple investment vehicle and forget about it until you retire, BH funds are good.

I personally, like you it seems, would never invest in a Mutual Fund ... I simply don't trust them and I want to be a bit more targeted in my investment strategy.

 

[oldngray]

Mutual funds usually have high costs and they pretty much get paid to invest other people's money into stocks and other securities that you could do for yourself and cut out the middle man.

 

[upschuck]

See why you confused me.

 

[Jones]

Which I said about 50 posts back and caused all the discussion about ETF Targeted funds and "hidden" costs inherent in Mutual Funds.
If one wants to just select a simple investment vehicle and forget about it until you retire, BH funds are good.

I personally, like you it seems, would never invest in a Mutual Fund ... I simply don't trust them and I want to be a bit more targeted in my investment strategy.

I'm probably not being clear.
I got no beef with mutual funds in general, in fact all my retirement savings are currently in mutual funds. I don't like actively managed mutual funds because:
1) They charge higher fees (to pay the fund managers)
2) They almost never, ever beat the lower cost index funds over the long term (and even on the very rare occasions that they do the higher returns are quickly eaten up by the higher fees)
The BH funds are a good perfect example, their fees are 10X more than the 500 index and I can guarantee you with almost absolute certainty that the 500 index will beat every single BH fund in returns, by a significant margin, over a 20 year period. The argument that they are a good choice for people who want to just put their money in one fund and not worry about it for years is specious, as you can do the exact same thing with 500 index. If they were the the only choice we had in the 401K then yes they would be a good choice but as it stands they are only a good choice if your goal is to literally give money away.