The link at the bottom is just the source for my rant today. You needn’t read it and I would rather you not support Kiplinger by viewing their site at all. This is a quick summary of the article:

The author introduces the article by reminding you of all the reasons you should be scared about your money. The goal is to get you to believe the funds they’re pushing are good investments for your peace of mind.  The author continues to describe 4 mutual funds designed to keep your money steady in a turbulent market.

Its a waste of time because you aren’t supposed to care what shape the market is in, investments are long term.  The funds represented here are not bad, they just aren’t good. I could not recommend these funds to anyone investing in the long term. If you are the type that moves around funds on a regular basis in an attempt to outpace the market, these funds are great. And you’re an idiot.

I spent 10 minutes researching four funds with similar investment styles as the four Kiplinger recommended. My funds are not as sexy as Kip’s, but they have better 5 year returns and cheaper expenses. They are all in the Vanguard family that I love so dearly, but you can find similar funds at many mutual fund families. Figures from Google Finance. Kip is in red, I’m in blue.


Ticker Investment Style Expenses 5 yr return Buy in

YACKX Large Blend 0.96% 11.41% $2,500
VFINX Large Blend 0.18% 11.49% $3,000
LLINX Foreign Large Blend 1.61% 18.53% $10,000
VDMIX Foreign Large Blend 0.22% 20.88% $3,000
JENSX Large Growth 0.85% 7.90% $2,500
VIGRX Large Growth 0.22% 10.22% $3,000
PRWCX Large Value 0.73% 12.76% $2,500
VIVAX Large Value 0.27% 14.03% $3,000
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categories: investing, media, personal finance