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Strategies & Market Trends : Vanguard Mutual Funds -- Ignore unavailable to you. Want to Upgrade?

To: CaBum who wrote (119)	9/15/2006 6:18:28 AM
From: 4mychips	Respond to of 136

Been with Vanguard for 20 years - and I got to say they have be a big help in balancing my investments – when my stock trading turned on me , my stick with vanguard funds have prevented losses (long term) - But with their new reg.[ that if you take out money from a fund –you can not reinvest in that fund for 2 months] makes it much harder to rebalance your account based on market circumstances and your choices are also limited when Vanguard closes a fund to new investors or sets the minimum investment very high- This is not good when the market turns down such as in May or in a sector as Energy has. One may hesitate to transfer out to other Vanguard funds under this rule and find themselves loosing money if we get a market like 2000 to2003. I am surprised the SEC lets them do this as it gives Vanguard grater control of your money. – One way around the 2 month limit is to have open 2 or 3 accounts in the same fund and alternate any withdraw you make each month. so you have one of the 2/3 open to new money if you decide to get back in on a turnaround as we just had. This all requires more planning on you the investor and I wonder if these rules could be harmful to somebody such as my wife who knows little about the stock market . All that said I will stick with Vanguard ( they are one of the “Big Boys in the market” ) and they know more than I do about it.