What’s it like to be really rich?

What’s it like to be really rich? Henry James’, Wings of the Dove…

Milly, the last heiress of all ages, is a girl free from all earthly ties, and as pure as Alpine air. She has never thought about the cruelty or sordidness to which money or the absence of money reduces people. On the contrary, her fabulous money seems to purify and mystify her, as if she were a princess into whose court life nothing disagreeable penetrates. But in reality, the girl couldn’t get away from her wealth…She couldn’t dress it away, nor walk it away, nor read it away, nor think it away;…She couldn’t have lost it if she had tried — that was what it was to be really rich. It had to be the thing you were…”

Morningstar: Mutual Funds Only Kinda Suck…

Part of the wave of revolution happening in the financial services right now is the movement from Mutual Funds to Index Funds, like ETFs. For years, I was a pariah in my old firm for advocating such indexing efforts. Recently Bob Seawright did a fantastic job answering, Why do clients need an Adviser if they index?

And now Morningstar is out with its latest edition of MorningstarAdvisor on the Urban Myths of Mutual Funds. Although it’s not quite the back-slap you’d expect from the leading Mutual Fund ratings company…

One urban myth circulating among investors is that mutual funds have hidden fees of 140 to 200 basis points that are omitted from expense ratios. When these hidden fees are added to a fund’s stated expense ratio, they presumably bring overall annual fund expenses to something in the 2.5% to 3% range. When the additional toll of taxation is taken into account, the total cost of fund ownership is supposedly close to 5% for some funds. It’s enough to send shivers down your spine.

While the terror of taxation on fund shares one continues to hold is real, the 140 to 200 basis points in hidden costs are largely fiction. The idea does have a basis in reality, however. Mutual funds do omit the cost of trading securities from their expense ratios…

The article is chock full of Chupacabra-busting…

Mutual Fund Urban Myths – MorningstarAdvisor

The Kitchen Table

ta·ble  

/ˈtābəl/
Noun
A piece of furniture with a flat top and one or more legs, providing a level surface on which objects may be placed.

I don’t know how it is in your house, but around mine — the kitchen is the heart of our home. And that 10-year-old faded & nicked Ikea black Bjursta kitchen table is sort of the aorta; endlessly beating through… Art projects and gift wrapping. Laughter and tears. Fart jokes and spilled milk.

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