Foreign ETF = Foreign currency?

[nostradamus]

Thanks! What is a break point? Does that mean if I invest $50k+ they will not charge me any loads or fees?

I never liked mutual funds because of their turnover rate and my conspiracy theories that fund managers can be corrupted.

[bubba99]

The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.

For example, you buy fxe at $120. The dollar declines by 2%. Your investment in fxe is now worth $122.40 But gold, oil, and goods manufactured in Europe are now 2% more expensive. And in theory everything here at home also costs 2% more. With the “new” market basket used in calculating consumer price index, it is hard to see the increase, but it is there over time.

All the fund has done is preserve your wealth, not add to it. Right now FXE is up $.66 as the dollar has fallen another half cent or so. But in Europe, your hotel room just went up by the same amount.

[bubba99]

The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.

For example, you buy fxe at $120. The dollar declines by 2%. Your investment in fxe is now worth $122.40 But gold, oil, and goods manufactured in Europe are now 2% more expensive. And in theory everything here at home also costs 2% more. With the “new” market basket used in calculating consumer price index, it is hard to see the increase, but it is there over time.

All the fund has done is preserve your wealth, not add to it. Right now FXE is up $.66 as the dollar has fallen another half cent or so. But in Europe, your hotel room just went up by the same amount.

[bubba99]

The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.

For example, you buy fxe at $120. The dollar declines by 2%. Your investment in fxe is now worth $122.40 But gold, oil, and goods manufactured in Europe are now 2% more expensive. And in theory everything here at home also costs 2% more. With the “new” market basket used in calculating consumer price index, it is hard to see the increase, but it is there over time.

All the fund has done is preserve your wealth, not add to it. Right now FXE is up $.66 as the dollar has fallen another half cent or so. But in Europe, your hotel room just went up by the same amount.

[DaCounselor]

“The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.”
____________________________

???????

How about interest earned at or near the prevailing local rate?

[DaCounselor]

“The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.”
____________________________

???????

How about interest earned at or near the prevailing local rate?

[DaCounselor]

“The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.”
____________________________

???????

How about interest earned at or near the prevailing local rate?

[Raybyrnes]

break points

break points in essence are volume discounts. as aretail investor buying lets’s say 10k in a mutual fund you may pay .65 of 1% in a management fee. at 50 k the same identical fund might only run you .35 of one percent.

this holds true for load funds aswell. let’ look at the american funds. typically they carge 5.75% load on a shares of their funds. put a million bucks with them and they waive the load. there are disconts on your way to a million aswell.

why is this important. because if you begin to aggregate your invetments you can get to a million fairly quickly. 2 kids that you will pay for college 200k. a rollover ira from a company 150k. Some rebalancing in the IRA 100K. wifes rollover 150K. Now if you own real estate for a eriod of time and feel that there is a lot of dead equity in the home you can elect to pull this out and put it to work 300k.

All of audden you have the best money management team in the world managing a million dollars of your wealth for an annual cost of between 5 to 8 k a year. i would say that isn’t too bad a deal.

pay attention to the break points early. you want to stay with the a great family of funds. this gets more challenging to do later on because later you have to deal with tax consequences if you are trying to sell to reach these break points.

[Raybyrnes]

break points

break points in essence are volume discounts. as aretail investor buying lets’s say 10k in a mutual fund you may pay .65 of 1% in a management fee. at 50 k the same identical fund might only run you .35 of one percent.

this holds true for load funds aswell. let’ look at the american funds. typically they carge 5.75% load on a shares of their funds. put a million bucks with them and they waive the load. there are disconts on your way to a million aswell.

why is this important. because if you begin to aggregate your invetments you can get to a million fairly quickly. 2 kids that you will pay for college 200k. a rollover ira from a company 150k. Some rebalancing in the IRA 100K. wifes rollover 150K. Now if you own real estate for a eriod of time and feel that there is a lot of dead equity in the home you can elect to pull this out and put it to work 300k.

All of audden you have the best money management team in the world managing a million dollars of your wealth for an annual cost of between 5 to 8 k a year. i would say that isn’t too bad a deal.

pay attention to the break points early. you want to stay with the a great family of funds. this gets more challenging to do later on because later you have to deal with tax consequences if you are trying to sell to reach these break points.

[Raybyrnes]

break points

break points in essence are volume discounts. as aretail investor buying lets’s say 10k in a mutual fund you may pay .65 of 1% in a management fee. at 50 k the same identical fund might only run you .35 of one percent.

this holds true for load funds aswell. let’ look at the american funds. typically they carge 5.75% load on a shares of their funds. put a million bucks with them and they waive the load. there are disconts on your way to a million aswell.

why is this important. because if you begin to aggregate your invetments you can get to a million fairly quickly. 2 kids that you will pay for college 200k. a rollover ira from a company 150k. Some rebalancing in the IRA 100K. wifes rollover 150K. Now if you own real estate for a eriod of time and feel that there is a lot of dead equity in the home you can elect to pull this out and put it to work 300k.

All of audden you have the best money management team in the world managing a million dollars of your wealth for an annual cost of between 5 to 8 k a year. i would say that isn’t too bad a deal.

pay attention to the break points early. you want to stay with the a great family of funds. this gets more challenging to do later on because later you have to deal with tax consequences if you are trying to sell to reach these break points.

[Author]

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