Carnival of Passive Investing #16

 Welcome to the 16th Carnival of Passive Investing!

For those that aren’t familiar, a blog carnival is a place to show off the best articles in a particular niche.  Publishers submit articles they think would be a great fit for a carnival and the site running it that week determines what articles make the cut.  It’s a great way for a site to show off their best stuff and a great way for readers to learn about a subject and get introduced to new sites.

This particular carnival deals with Passive Investing (hence the name).  The purpose of the carnival is to get knowledge out about passive investing and to have a place where those interested in passive investing can learn more and share articles.

If you have a site with an article that would be a great fit for the Carnival of Passive Investing then make sure to submit your article via the carnival submission form.

Over 50 articles were submitted but only 18 made the cut.

And now to the 16th Carnival of Passive Investing! 

Editor’s Picks

Jacob presents The Permanent Portfolio by Harry Browne – Component Returns Correlation Analysis and My Future Plans posted at My Personal Finance Journey - This post describes Harry Browne’s Permanent Portfolio asset allocation strategy as a way to obtain market-beating returns, which aims to provide safety and stability to the money you deem that you cannot afford to lose. This post also presents a correlation coefficient matrix analysis of the returns of the various components of the Permanent Portfolio, as well as Jacob @ MPFJ’s future plans for using the Permanent Portfolio in his asset allocation strategy.

Echo presents How Index Funds Compare To Equity Mutual Funds posted at Boomer & Echo - I compared the 10-year performance of high cost Canadian equity mutual funds to the equivalent low-cost index funds. Here are the results.

And here are the rest…

PK presents Don’t Use Leveraged ETFs (Unless…) posted at Don’t Quit Your Day Job... – ETFs – in general, a safe place to invest your money in a passive manner (even if you do keep an eye on them). However, some investors have a ticking time bomb in their portfolio, in the form on daily-rebalancing leveraged ETFs. Read this to see the danger!

Khaleef Crumbley presents Roth Vs Traditional IRA: Which One Is Best For You? posted at Faithful With A Few – Roth vs Traditional IRA is an important distinction By understanding the differences, you can increase your retirement nest egg by hundreds of thousands of dollars!

Glen Craig presents Grow Your Nest Egg with Automatic Retirement Contributions posted at Free From Broke – A great way to grow your nest is, or your retirement fund, is to set up automatic retirement contributions. See some ways that you can do this to get on track to retiring.

Bob presents What exactly is a Charitable Remainder Trust posted at ChristianPF – Business Dictionary defines a Charitable Remainder Trust (CRT) as an “arrangement under which a donor receives income (for a fixed period or during donor’s lifetime) from an asset donated to a qualified charitable organization.

Investor Junkie presents Press Your Luck with Dividend Stocks or Fixed Income posted at Investor Junkie – One of my favorite gameshows from the 80?s was “Press Your Luck”. The popular phrase from that show was “big bucks and no whammies”! Unfortunately investors looking for yield in 2012 and 2013 are only going to get whammies. It’s a very difficult time to invest looking for yield, and I actually call it a double whammy. We are going to get hit on two fronts, both will affect your investment returns.

Dan presents Tracking Error Explained posted at ETF Base – There’s a hidden killer in your portfolio you probably don’t even know about (and it’s not fees). Find out how to avoid being duped.

Philip Taylor presents What Is a Roth IRA and How Does It Work posted at PT Money Personal Finance – A post designed to help explain IRAs and bring awareness to the benefits of IRAs.

Darwin presents Internal Rate of Return Equation Reviewed posted at Darwin’s Money – Here’s a primer on how to calculate the Internal Rate of Return in excel, which is a great tool that everyone should understand.

Darrow Kirkpatrick presents How Investment Newsletters “Beat” the Market posted at Can I Retire Yet? – If you believe that a low-cost, passive indexing strategy is the best investment philosophy for most investors, you may scratch your head, wondering how investment newsletter writers can make such brazen claims. This article discusses how they do it, giving hypothetical and real-world examples. It concludes with my own experience that the primary value of a good newsletter, or blog, is the regular reminder of investing fundamentals, not the stock picking.

Dividend Growth Investor presents Dividend Achievers Additions for 2012 posted at Dividend Growth Investor – The new additions to the Dividend Achievers Index were announced a few weeks ago by Mergent. Dividend achievers are US companies with at least ten consecutive years of increasing regular dividends.

Dan presents 401(k) Annuities as a New Retirement Option posted at High Yield Edge – The administration just loosened rules for new 401(k) annuity options for workers. Check out the rules, pros and cons and how this may be used to supplement your retirement.

Barbara Friedberg presents MBA Lecture Recap; How to Benefit from Cyclical Investment Markets? posted at Barbara Friedberg Personal Finance – Accept cyclical investment markets and prosper by using a passive, index fund informed approach.

Matt presents Mutual Funds Explained for Dummies posted at RamblingFever Money – If you have a 401k through your employer, you probably have money invested in mutual funds. Whether you knew it or not, you are mutually funding an investment that is managed by somebody else. Many believe mutual fund investing to be the safest and most secure way to invest in the stock market.

Khaleef Crumbley presents Why A Roth IRA Is Better For Us Than A Traditional posted at Fat Guy, Skinny Wallet - A Roth IRA is a powerful tool for saving toward retirement Find out why we chose this option over a Traditional IRA, and see if this move is right for you!

Ken Faulkenberry presents Planning Investment Accounts for Retirement posted at AAAMP Blog – The benefits offered by retirement investment accounts make them an important foundation for retirement planning. Here are the major investment accounts for retirement.

Laura Edgar presents Guest Post: Are You Ready To Invest In The Stock Market? posted at NerdWallet Blog – Credit Card Watch – Stocks – they’re a great long term way of making money, right? Well unfortunately things aren’t that simple. We’ve all wished we were in there when Microsoft was a mere baby so we would be rich by now. But things don’t always happen that way and you should never jump into stock investments or open an account with a top brokerage without finding out where your money is going first.

And that’s a carnival folks!

I hope you enjoyed.  Let me know in the comments which article you liked best.