Ask The SEC

Who is the SEC and why should I ask them something? The Securities and Exchange Commission in Washington, DC is the government agency that regulates the securities industry. They make the rules that all publicly listed companies must, brokerage houses and investment tracking.

My readers know that I am a believer in purchasing mutual funds for investment and retirement accounts. The reason is that very few people are qualified to select stocks. Unfortunately, that also applies to many mutual fund managers especially when you look at the performance of the majority of the funds for the year 2000.

I can excuse the average Joe for not being able to pick winners but I can a fund manager paid huge amounts of money (always 6 digits and usually 7 digits) to the money from the little people who invest lose no excuse. There are 77 million owners of mutual funds and 80% of them have less than $ 50,000 in their accounts. Why is someone giving their money to lose? These are the "experts".

Yes, they owe accountability to you, but there is only one way to make accountable registry and that is to close out your account. If you lose money take away from your current "expert" and put it in a mutual fund that currently goes up. And when that one starts down to another one that goes up. My experience teaches you more than to change. Approximately once or twice a year But you will not give 30% to 50% of your money by doing this back.

You see mutual fund managers are not paid on performance, but about how much money they have in the fund. That's one of the reasons why they always tell you to buy and hold. You buy. They love. They make money. That you do not.

Back to the SEC. Here's what you need to ask them. Why can not be paid a percentage of the profits they generate instead of skimming a percentage of the top every year, even if the money from the customers to lose? Mutual fund managers I doubt you get a satisfactory answer as you can be sure the lobby fund has more influence than you. The same may be the case if your Congressman had to say that as a law. He gets the campaign contributions from the lobbyists.

This rule is already permitted for hedge funds, which are very similar to mutual funds, but only rich people buy these. Maybe it's time that someone had the SEC look after the interests of small investors fund. If you get an answer let me know.

Al Thomas' book, "If it does not go up, do not buy!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at and discover why he's the man that Wall Street does not want you to know....