Re: why use Schwab?
The mutual fund supercenters make it easy to diversify your portfolio,
with one statement and one place to look. PBHG is great for US
growth, but not for international or bonds or health care or
gold. The supercenters make it very easy, and as a former direct
purchaser from the funds themselves, I can say the paperwork is
MUCH reduced. It is very easy to track my investments. Further,
if one would like to use options or individual stocks to diversify,
it is still but one statement. There is no charge at all by Schwab,
and they carry every fund I would want in the first place. Even
if you like PBHG, it can't meet all the needs of a properly
diversified portfolio. During the fall did you see the 1.30+ losses
by the PBHG funds? That's not a problem as long as we're in
a long term bull market, but historically this market has been going
straight up. A 30% correction or sideways movement for 5-10 years
is not historically improbable, and holding only PBHG would
be murder. Diversification, especially with international funds,
is extremely important during the current market conditions. |
