RE: Beginners Questions
(2013-11-26, 03:33 AM)BoyPlunger Wrote: has anyone looked at the mutual fund switching method explained by Stan in chapter 9?
I can't really see a tangible benefit over trading stocks but I'd assume this method is even easier now with ETF's instead of no load mutual funds?
I have been using the mutual fund switching method on my 401k account since August and so far I think it works great. I have my funds in an index fund that is tracking the Russell Small Cap 2000 (up 35% this year). My current stop is at 1000 and if it hits that I will move to money market account (or possibly S&P index fund if that is still rising).
The only reason I can think to use mutual fund switching in your taxable account over individual stocks would be if you'd rather have exposure to an entire sector... otherwise stocks are better IMO.
I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over again in my life. And that is why I succeed. - Michael Jordan