馃攳
Successful Living: Mutual Fund X-Ray - YouTube
Channel: unknown
[0]
welcome back to successful living mutual
[2]
funds they're the core of most the
[4]
investments these days sure there's
[6]
stocks sure there's etfs but mutual
[8]
funds tend to dominate
[9]
you know the headline in the news and so
[11]
you know in general we've got a bundle
[12]
of stocks that we're going to say are a
[14]
certain size and those become
[16]
the mutual funds themselves so when we
[18]
look at mutual funds
[19]
beyond just saying it's a morningstar
[21]
three-star four-star
[22]
five-star fund we need to look a little
[25]
bit deeper
[26]
and so what we want to do is we want to
[27]
pull a morningstar fact sheet which you
[29]
can get online
[30]
there's paid for service there's free
[31]
service obviously the ones that are paid
[33]
for you're going to get more detail
[34]
or you can go to the mutual fund company
[36]
itself and they will also have a fax
[37]
sheet
[38]
so let's take a look at the top four
[40]
factors
[41]
when choosing a mutual fund number one
[43]
is performance
[44]
obviously we're going to want to look at
[45]
what the performance is you want to look
[47]
at it not in relation to the stock
[49]
market itself
[50]
but if you have a large cap value how
[52]
does it perform versus large cap value
[53]
small cap
[54]
versus small cap asset class you're
[57]
going to want to make sure that you
[58]
understand
[58]
is it all large cap is it all mid cap or
[61]
small cap
[61]
it may say it is but what you want to
[63]
look at is how much
[65]
you know of the stocks in there if it's
[66]
a large cap stock are all large cap
[68]
stock companies
[70]
number three risk reward make sure that
[71]
you're not taking too much risk and not
[73]
getting enough reward make sure those
[74]
are balanced off
[76]
and number four understand your fees
[78]
there's many share classes we're going
[79]
to look at that in just a second
[81]
understand the fees that come into play
[83]
with that so what i want to now move to
[85]
um
[86]
is what the fact sheets look like so
[88]
it's a little minute in detail but i
[89]
think this will be helpful
[91]
so let's take the first uh slide here
[94]
and i've highlighted a few things number
[95]
one is we're looking at performance
[97]
and if we go across the screen in 2019
[100]
this specific fund we'll call it the abc
[102]
fund return 34 you would think that
[104]
blows everything out of the water but if
[106]
you go down to the bottom
[108]
there's the quartile ranking and there's
[110]
it's ranked
[111]
the top 33 percent so on earth 1
[114]
360 funds this fund was in the top third
[118]
of all of let's call it large cap value
[120]
funds
[121]
year to date this fund was up 18 again
[124]
top third out of 1295 funds so what you
[128]
want to do is make sure you understand
[129]
you should be obviously below the top
[132]
half
[132]
top third is very good top 20 percent is
[135]
excellent
[136]
you always want to compare an apple to
[137]
an apple and this is what it shows
[139]
on our next slide we take a look at our
[141]
risk return if we look at the top
[143]
left this is a great fund so you look at
[145]
the risk is at a very low rate
[148]
and the return is above average that is
[150]
an extremely healthy
[152]
marriage there you want you don't want
[154]
to have high risk
[156]
low returns so this is a very very
[158]
healthy marriage
[159]
in this sense and then if we go down to
[161]
the bottom right here i really like this
[163]
one
[164]
this is capture ratio and so there's an
[166]
upside capture on this fund which says
[168]
111. that means that if if it's
[171]
performing at 10
[173]
for the average in the category this
[175]
fund gets 11.1 percent
[178]
the downside capture is at 73
[181]
and what that's saying is if we took all
[183]
the negative days let's call it for five
[185]
years
[185]
and the negative was -10 average for the
[188]
category this only lost 7.3
[190]
so we want to be on the upside above 100
[193]
and on the downside
[194]
below 100 and again very healthy fund
[197]
that we're looking at here
[199]
better than a star rating on our last
[201]
page that we look at
[203]
is you've got this same exact fund
[206]
sometimes you have to have an advisor
[207]
sometimes it has to be in a 401k but as
[209]
you can see here you're getting the same
[211]
investment
[212]
and you're talking about a difference
[213]
sometimes in the first one and a share
[215]
is .89 and a c
[217]
share is 1.64 you're talking about
[219]
almost twice as much internal expense
[221]
which comes right off of the rate of
[223]
return
[224]
again uh you need to be looking at a lot
[226]
of things when it comes to choosing your
[227]
mutual fund
[228]
when we come back we'll answer a
[230]
question on inheriting your ex-spouse's
[232]
ira stay tuned
[233]
welcome back to successful living we
[235]
have another viewer question we
[237]
appreciate all the questions that come
[238]
in
[240]
i am 55 years old and divorced i have a
[242]
quadro which is a qualified domestic
[244]
relations order from my husband's 401k
[247]
should i transfer it out of his 401k to
[250]
an ira or should i leave it
[252]
that's eileen from portsmouth so eileen
[255]
very important to understand if you're
[256]
under the age of 59 and a half
[258]
if you leave it in the quadro you can
[260]
avoid the 10
[261]
penalty and withdraw it before you reach
[263]
59 and a half
[264]
if you move that to another ira
[266]
somewhere else you lose the ability to
[268]
do that
[269]
if you do leave it there you still have
[271]
to pay federal and state taxes
[273]
and be sure that you make sure that you
[275]
you have the right risk
[276]
and you choose the right funds and the
[278]
right allocations
[279]
so we want to thank you again for
[280]
joining us on
[282]
successful living this week we hope
[284]
you'll join us every week you hope to
[285]
take a look
[285]
online at all our clips have a great
[288]
week thanks again
[298]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage