Move your personal investments and retirement funds to socially responsible investment (SRI) funds that support only those corporations that uphold higher standards of behavior. Returns on SRI funds are usually equal to, if not better than, many of the well-known traditional mutual funds.
Even fans of actively managed funds often concede that most other investors would be better off in index funds. But buoyed by abundant self-confidence, these folks aren't about to give up on actively managed funds themselves. A tad delusional? I think so. Picking the best-performing funds is 'like trying to predict the dice before you roll them down the craps table,' says an investment adviser in Boca Raton, FL. 'I can't do it. The public can't do it.'
... skepticism about past returns is crucial. The truth is, much as you may wish you could know which funds will be hot, you can't - and neither can the legions of advisers and publications that claim they can. That's why building a portfolio around index funds isn't really settling for average. It's just refusing to believe in magic.
Throughout the universe of public and private funds, managers are measured quarterly against one index or another, defined by statistics, and corralled into this category or that category so that fund of funds, pensions, and other institutions can make comforting - if not necessarily prudent - asset allocation decisions.
The only person on this ship who gets paid for what they do is you, Alix. The rest of us live off our trust funds and we use those funds for our humanitarian missions. I do what I do because I can't stand to see innocent people bullied by a corrupt government. I don't want to see a baby starve and die because some fat politician wants to work its parents into the ground for a mineral most of them can't even pronounce. (Devyn)
We are seeing more managed money and, to an extent, institutional money entering the space. Anecdotally speaking, I know of many people who are working at hedge funds or other investment managers who are trading cryptocurrency personally, the question is, when do people start doing it with their firms and funds?
While it is probably a poor idea to own actively managed funds in general, it is truly a terrible idea to own them in taxable accounts... taxes are a drag on performance of up to 4 percentage points each year... many index funds allow your capital gains to grow largely undisturbed until you sell... For the taxable investor, indexing means never having to say you're sorry.
William J. Bernstein
Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product. But if it makes money, we tend to do it in this country.
In 1946, Oxford University in England was offered large funds to create a new Institute of Human Nutrition. The University refused the funds on the ground that the knowledge of human nutrition was essentially complete, and that the proposed institution would soon run out of meaningful research projects.
Because of the oil-and-water relationship governments have cultivated between ethics and political economy, speaking in plain terms - spelling it out as it is - as become foreign to the public. So here goes: When government sports a surplus, this implies that the political pickpockets have stolen more funds than they can possibly dream of spending. The property is not theirs to keep! Conversely, when deficits are reported, this means that the kleptomaniacs have not been able to steal sufficient funds to cover their profligacy.
Millions of mutual-fund investors sleep well at night, serene in the belief that superior outcomes result from pooling funds with like-minded investors and engaging high-quality investment managers to provide professional insight. The conventional wisdom ends up hopelessly unwise, as evidence shows an overwhelming rate of failure by mutual funds to deliver on promises.
David F. Swensen
There is the general belief that the corporation income tax is a tax on the "rich" and on the "fat cats." But with pension funds owning 30% of American large business-and soon to own 50%-the corporation income tax, in effect, eases the load on those in top income brackets and penalizes the beneficiaries of pension funds.
Nothing highlights better the continuing gap between rhetoric and substance in British financial services than the failure of providers here to emulate Jack Bogle's index fund success in the United States. Every professional in the City knows that index funds should be core building blocks in any long-term investor's portfolio. Since 1976, the Vanguard index funds has produced a compound annual return of 12 percent, better than three-quarters of its peer group.
Invest in low-turnover, passively managed index funds... and stay away from profit-driven investment management organizations... The mutual fund industry is a colossal failure... resulting from its systematic exploitation of individual investors... as funds extract enormous sums from investors in exchange for providing a shocking disservice... Excessive management fees take their toll, and manager profits dominate fiduciary responsibility.
David F. Swensen
One year ago, on this occasion, I called your attention to the abuses that had crept into the distribution of our public funds, and I urged you and pleaded with you that, so far as the Church and its membership were concerned, we do not soil our hands with the bounteous outpouring of funds which the government was giving unto us. I renew that plea now. My brethren and sisters, for the sake of the government which we love, for the sake of the government which we believe was divinely inspired, be honest with it. Be honest, just ordinarily gold honest. That is all I ask.
J. Reuben Clark
Searching for funds to continue my skating career when I was 17, I called the Women's Sports Foundation in New York. The intern who answered the phone suggested that I might be a great candidate for the Travel and Training fund, and she sent me an application form. I applied for a grant. With the funds I was awarded, I bought a new pair of skates and a plane ticket to the 1988 National Championships, where I achieved my highest national finish. Four years later, I won the gold medal at the 1992 Olympic Games.
The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.
John C. Bogle
The need for collecting large campaign funds would vanish if Congress provided an appropriation for the proper and legitimate expenses of each of the great national parties, an appropriation ample enough to meet the necessity for thorough organization and machinery, which requires a large expenditure of money. Then the stipulation should be made that no party receiving campaign funds from the Treasury should accept more than a fixed amount from any individual subscriber or donor; and the necessary publicity for receipts and expenditures could without difficulty be provided.
[The Republicans] offer . . . a detailed agenda for national renewal. . . . [On] reducing illegitimacy . . . the state will use . . . funds for programs to reduce out-of-wedlock pregnancies, to promote adoption, to establish and operate children's group homes, to establish and operate residential group homes for unwed mothers, or for any purpose the state deems appropriate. None of the taxpayer funds may be used for abortion services or abortion counseling.