Thank you for your comments about my prior blog post: Ten Headlines You’ll Never See in the Financial Media.  Here are ten more:

1. It’s likely the stock or bond mutual fund we recommend won’t even survive the next decade, much less outperform a comparable index fund.
2. The higher the cost of a mutual fund, the less likely it is to outperform a comparable index fund.
3. If it really was “different this time”, we would still have no clue.
4. There’s an inverse relationship between the supreme confidence of our “gurus” and their track record for accuracy.
5. There’s also an inverse relationship between the frequency of media appearances by our “gurus” and their track record for accuracy.
6. Predicting and writing about “doom and gloom” is much more profitable than following this advice.
7. Running a hedge fund is much more profitable than investing in one.
8. The primary beneficiaries of 401(k) plans are record keepers, brokers, insurance companies and mutual funds.
9. 403(b) plans give the most valuable members of our society (those who are employed in public schools, hospitals, not-for-profits and members of the clergy) such appalling investment options their retirement goals are unlikely to ever be met.
10. The most important person making a positive impact on investors today is someone you’ve probably never heard about: Jerome Schlichter.

Ask Dan

Question from Bev:

Should I invest in a traditional or Roth IRA?

You can find a good comparison of these two IRAs here.

If you qualify for a Roth, you should seriously consider it.  It comes down to “pay now or pay later.”  You will pay income taxes at your marginal tax rate on traditional IRA earnings. No one can tell you what that tax rate will be.

With a Roth, you contribute after-tax money now, but you’ll never pay taxes on your contributions or earnings as long as you comply with the Roth rules.

Recommended resource of the week

This week’s pick is: http://ritholtz.com.  Financial journalist Barry Ritholtz is the author of a popular blog and podcast about investing.  His blogs are engaging, down-to-earth, insightful and refreshingly candid.

This Week's Video: Bait and Distract

https://youtu.be/3Q5LsTa0Pyk?rel=0

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