Ask The SEC

Who is the SEC and why should I ask them anything? The Securities and Exchange Commission in Washington, DC is the government bureau that regulates the securities industry. They make the regulations that all stock exchange listed companies, brokerage houses and mutual funds must follow.

My readers know that I am a believer in the purchase of mutual funds for investment and retirement accounts. The reason is that very few people are qualified to choose stocks. Unfortunately that also applies to many mutual fund managers especially when you look at the performance of the majority of funds for the year 2000.

I can excuse the average Joe for not being able to pick winners, but I cannot excuse a fund manager who is paid huge amounts of money (always 6 figures and mostly 7 figures) to lose the cash of the little people who invest. There are 77,000,000 owners of mutual funds and 80% of them have less than $50,000 in their accounts. Why is anyone giving them their money to have them lose it? These are the "experts".

Yes, they are accountable to you, but there is only one way to make that accountability register and that is to close out your account. If you are losing money then take it away from your current "expert" and put it with a mutual fund that is currently going up. And when that one starts down you switch to another one that is going up. My experience shows you will not be changing more than about once or twice a year. But you will not give back 30% to 50% of your money by doing this.

You see mutual fund managers are paid not on performance, but on how much money they have in the fund. That is one of the reasons they always tell you to Buy and Hold. You buy. They hold. They make money. You don't.

Back to the SEC. Here is what you need to ask them. Why can't mutual fund managers be paid a percentage of the profits they generate rather than skimming a percentage off the top every year even when they lose the customers' money? I doubt you will get a satisfactory answer, as you can be sure the mutual fund lobby has more influence than you do. The same may be true if your Congressman were to institute that as a law. He gets campaign contributions from the lobbyists.

This rule is already being allowed for hedge funds, which are very similar to mutual funds; however, only rich people can buy these. Maybe it is time someone had the SEC look after the interests of the small mutual fund investors. If you get an answer please let me know.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://business.maktoob.com/NewsDetails-20070423198816-Chinas_sovereign_wealth_fund_to_avoid_western_financial_firms_report.htmcid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNHLUpPeEB0_Ii4RQMMTL59bB8Ku4wimg src=http://news.google.com/news?imgefp=K62OWT971-0Jimgurl=business.maktoob.com/BusinessImages/News/20070423198816/Feature.jpg width=80 height=48 alt= border=1brfont size=-2Maktoob Business (press release)/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122826930864174785.html%3Fmod%3Dgooglenews_wsjcid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNEE78VZJ6VNoQTZQiGX7VBSxTzwIgCIC Head Wary of bInvesting/b in Western Banks/abrfont size=-1font color=#6f6f6fWall Street Journalnbsp;-/font nobr21 hours ago/nobr/fontbrfont size=-1Lou Jiwei, who head#39;s China bInvestment/b Corp., said the uncertainty surrounding Western banks and the policy decisions that may determine their fate makes it b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/mergersNews/idUSHKG4792720081203cid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNE5zYQjEtzn6_CYTjRjqi07CDvNCgUPDATE 1-China wealth fund lacks stomach for financial buys/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.in-forum.com/ap/index.cfm%3Fpage%3Dview%26id%3DD94R1S8O0cid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNG0qOYDmdkKb909i3MmlqxxhjKVxQHead of China#39;s biggest government binvestment/b fund says not b.../b/a font size=-1 color=#6f6f6fnobrIn-Forum/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/ap/article/ALeqM5gD9J9UD7Yp9X0GGbS9mE0jDvK3NAD94QV6782cid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNGpo1y4AWaOqEemijMlzMVuog4StQChina reluctant to invest in foreign banks/a font size=-1 color=#6f6f6fnobrThe Associated Press/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.financeasia.com/article.aspx%3FCIaNID%3D90371cid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNHxNPraC_3BYqpwsmz0n9P1FtnAKgnobrFinanceAsia/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.channelnewsasia.com/stories/afp_world_business/view/393926/1/.htmlcid=1277021301ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNEf-lxO8QvzFwev8OTKRcyDMDD4nQnobrChannel News Asia/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277021301hl=ennobrall 241 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://feeds.latimes.com/~r/MoneyCompany/~3/473033501/toss-your-stock.htmlcid=1276924039ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNHobH6vSzqPsMrxwi2NQfhtexlq7wToss your stock-binvesting/b assumptions, Bill Gross says/abrfont size=-1font color=#6f6f6fLos Angeles Times,nbsp;CAnbsp;-/font nobr23 hours ago/nobr/fontbrfont size=-1So says Bill Gross, noted bond guru at Pacific bInvestment/b Management Co. in Newport Beach. Perhaps not surprisingly, Gross argues that it’s “better to own b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.usnews.com/articles/business/investing/2008/12/02/etf-investing-5-pitfalls-to-avoid.htmlcid=1277290786ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNFmauAirJG07Uu1uC1zt_bb3TLAaAETF bInvesting/b: 5 Pitfalls to Avoid/abrfont size=-1font color=#6f6f6fU.S. News World Report,nbsp;DCnbsp;-/font nobr29 minutes ago/nobr/fontbrfont size=-1By Kirk Shinkle Security, transparency, low costs: It#39;s the mantra of the exchange-traded fund industry, and by and large, most ETFs do live up to the b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.usnews.com/articles/business/investing/2008/12/03/building-a-portfolio-using-etfs.htmlcid=1277290786ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNH-KJPZ70_sm-d_leI1t0zYc9PUkQBuilding a Portfolio Using ETFs/a font size=-1 color=#6f6f6fnobrU.S. News World Report/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277290786hl=ennobrall 5 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/Ziegler-Exchange-Traded-Trust-Announces/story.aspx%3Fguid%3D%257BDF4DAA5B-CA20-4759-A48B-FE62B4FE79F3%257Dcid=1277195626ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNEyqZxlYZJcSlgl1mSj2jBysns3bAZiegler Exchange Traded Trust Announces Change to Previously b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1Prospective purchasers of the NYSE Arca Tech 100 ETF should consider the binvestment/b objectives, risks, charges and expenses carefully before binvesting/b. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL312117020081203cid=1277133709ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNFO6hkIHgpftCCOqfWDH5LRSssgrQOyak Cement says binvesting/b despite shrinking market/abrfont size=-1font color=#6f6f6fReutersnbsp;-/font nobr13 hours ago/nobr/fontbrfont size=-1ISTANBUL, Dec 3 (Reuters) - Turkey#39;s Oyak Cement Group said on Wednesday it was pressing ahead with investments despite an expected 10 percent decline in b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/afp/article/ALeqM5i26BE7fXAtVAaZ7b4XFXVDycCiNQcid=1274822976ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNGXrSe1vMfm0DFiwr1lkZeQC1tOKQimg src=http://news.google.com/news?imgefp=8Okj0ZM7Ye0Jimgurl=www.google.com/hostednews/afp/media/ALeqM5iSKq-w0uafZ9QVjddwuvI3NWYVvg width=80 height=53 alt= border=1brfont size=-2AFP/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://seekingalpha.com/article/108954-recessions-are-perfect-for-currency-investingcid=1274822976ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNH0JgzXCA7UYFFxP9gpxofMeH6dlQRecessions Are Perfect for Currency bInvesting/b/abrfont size=-1font color=#6f6f6fSeeking Alpha,nbsp;NYnbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1One thing that I love about the currency market is that there is always a currency or two going up at all times, even when stocks and commodities are b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaOv7gMbqGRXE%26refer%3Dhomecid=1274822976ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNGQvf8TSvo6zMINQnYt7xl25JpMXQYen Gains on Concern Recession Will Spur Repatriation of Funds/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.forexhound.com/article.cfm%3FarticleID%3D119359cid=1274822976ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNGdkLR0xvINYR3d5LXpzSrdtaKF7QMarket Overview by Forex Yard/a font size=-1 color=#6f6f6fnobrForex Hound/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.forexfactory.com/news.php%3Fdo%3Dnews%26id%3D132147cid=1274822976ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNHRmjeMkpsb7xtPXA4RTuND5aXIJQWeekly Forex Wrap-up/a font size=-1 color=#6f6f6fnobrForex Factory/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.istockanalyst.com/article/viewarticle%2Barticleid_2840959.htmlcid=1274822976ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNF3xW2JNIMPoIxA25YtJDvdFK-9qwnobristockAnalyst.com (press release)/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1274822976hl=ennobrall 423 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.fool.com/investing/value/2008/12/03/your-once-in-a-lifetime-investing-opportunity.aspxcid=1277257929ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNFGRxsRIbieCTrPhzfQ3HFa18W7FAYour Once-in-a-Lifetime bInvesting/b Opportunity/abrfont size=-1font color=#6f6f6fMotley Foolnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1But it was binvestment/b banks and financial institutions -- the largest and fiercest players on Wall Street -- that were literally ground zero for this b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/Research-Markets-Wall-Streets-Buried/story.aspx%3Fguid%3D%257B6DF42620-8A22-4060-AFAB-9746E61CF9C9%257Dcid=1276921655ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNF-wXGejMu-Ofbtzo-UKm3jcrxO5wResearch and Markets: Wall Street#39;s Buried Treasure: The Low b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobrDec 2, 2008/nobr/fontbrfont size=-1BILL KRAFT, trader, speaker, trading coach, and author of Trade Your Way to Wealth quot;bInvesting/b without Wall Street#39;s Buried Treasure is like trying to live b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.usnews.com/blogs/new-money/2008/12/03/a-blitz-of-funds-reopen-for-business.htmlcid=1276921655ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNH6uwFYXBY0fXO_ORXBmVJ0-KySyAA Blitz of Funds Reopen for Business/a font size=-1 color=#6f6f6fnobrU.S. News World Report/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3Da_3sKuDYazdE%26refer%3Dhomecid=1276921655ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNFFr83pZqA3ktPyLeX6UPQf20BwkAFidelity to Open Contrafund, Low-Priced Stock Fund (Update1)/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1276921655hl=ennobrall 44 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://money.cnn.com/2008/12/02/news/economy/lashinsky_investing.fortune/cid=0ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNFlXH1oMK_xb7E-p4QOh6MYkJbgEwA slow and steady binvesting/b strategy/abrfont size=-1font color=#6f6f6fCNNMoney.comnbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1Investor Daily: During the flat market of 1966-1982, investors who kept binvesting/b every month earned better returns. By Adam Lashinsky, senior writer SAN b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/ProFunds-Group-Names-Todd-Johnson/story.aspx%3Fguid%3D%257B6F12D787-F2AA-467D-AB6E-EF41B647FE49%257Dcid=1276872728ei=ZRs3Sd_5LZnU9QSwyc2uDwusg=AFQjCNElSrQguJZTdHA-HpUBe3MayO2bZgProFunds Group Names Todd Johnson Chief bInvestment/b Officer/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobrDec 2, 2008/nobr/fontbrfont size=-1Mr. Johnson, formerly with World Asset Management, will oversee all binvestment/b operations for ProShares ETFs and ProFunds mutual funds. b.../b/font/div/font/td/tr/table
investing - Google News


Wind Chimes and more...

Windchimes for great gifts!

HYIPs Investments or Scams?

High Yield Investment Programs (HYIPs) appear at first to be... Read More

The Truth About Real Estate Investing - Is It Right For You?

You have probably been hearing, seeing and reading that real... Read More

Introduction To FOREX

The Foreign Exchange Market, better known as FOREX, is a... Read More

Holy Grail Investments

Every year I go to the Money Show in Orlando,... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #4

Can you concisely summarize your investment philosophy in a few... Read More

Seecrets on Investment: Tired of Making Huge Losses in the Stock Market ? Part 1

Over 80% of all individual investors lose money in any... Read More

Consolidation Period

The economic data reported Fri showed continued above trend growth... Read More

Is Starting A Business For Me? What To Consider Before Starting A Business

Do you have the right temperament?Starting a small business is... Read More

Almost Anyone Can Open A Roth IRA!

The Roth is kind of weird until you get used... Read More

An Old Dividend Stock Investment Idea, for a New Generation

Death and taxes! The certainties of life! And then, of... Read More

The 8 Biggest Mistakes When Designing Portfolios - and How To Avoid Them

Are you as good an investor as you think? Do... Read More

Critical Investors Business Daily Responsibilities - If not Followed Could Cost You Millions!

When thinking about the investors business daily responsibilities in today’s... Read More

The Economy Is Not The Stock Market

Several days ago, the Commerce Department reported that May's factory... Read More

Types of Investment

The word 'investments' is one that most of us are... Read More

Foreign Investing - US Investors Still Missing Out?

Investors are still too slowly realizing what the academics have... Read More

How to Invest Overseas - Intelligently!

In recent months, many advisors have talked a lot about... Read More

The Past Does Not Equal The Future: Mutual Fund Returns!

A way that investors get ripped off and in a... Read More

Franchise Investing, Franchise Opportunities and Franchising Renewals

Have you considered buying a franchise instead of trying to... Read More

Day Traders and Swing Traders and Options? Maybe!

Typical day traders and swing traders look for stocks with... Read More

Need To Trade!

You don't HAVE to be trading.As a novice trader, you'll... Read More

Useful Tips on Investing

Here are some useful tips on investing. When you make... Read More

Delist My Corporation Please

It use to be said that once a company was... Read More

Credit Scores = ROI Profits for Real Estate Investors

Strong credit saves real estate investors money on mortgage finance... Read More

How Eating Bitumen Made Me a Better Stock Trader

Stock market trading is a fascinating activity.There are so many... Read More

Investing for Retirement - Not an All or Nothing Play

In 1519, Hernando Cortes, beached on the shores of unexplored... Read More