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Andrew Tobias

Money and Other Subjects

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Andrew Tobias
Andrew Tobias

Money and Other Subjects

If the Man in the Moon Owned Palestinian Mutual Funds

October 21, 2003February 23, 2017

INDEX VS TAX-MANAGED

Marty: “I’ve had Vanguard’s Total Stock Market Index Fund (which mirrors the Wilshire 5000) as my core taxable holding for some time. I liked owning the entire market (not just large caps), and figured that this should be pretty tax efficient. Could you discuss the pros and cons of Index vs. ‘Tax Managed’ Funds?”

☞ Index funds are, by their nature, tax efficient (they subject you to little capital gains tax until you sell, because they rarely have to take gains) – and they carry lower fees and expenses than the actively managed funds. So, yes, a tax-managed fund may eliminate one of the disadvantages of the typical actively managed fund (namely, the taxes it exposes you to). But it doesn’t eliminate the other (higher fees).

THINKING OUTSIDE THE BOX: A PLAN FOR PALESTINIAN ECONOMY

This comes from a very smart money manager who has the ear of serious people.

It’s not new (they have not yet listened that closely), but it’s a fascinating notion for boot-strapping a bereft economy. If you like pondering audacious proposals, take a look.

PICKING UP THE PACE

I was in a magnificent cathedral today that took 140 years to build. They started in 1296; finished March 25, 1436. Consider that the project to put a man on the moon took nine years. (Or was it eight?)

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