STORM2K

Anybody here a guru when it comes to the mutual fund industry? I need someone to explain to me what has been happening with companies such as Putnam and the charges brought against them and the ongoing investigations related to same. Putnam is the company we have our profit sharing and retirement accounts with and I don't understand what is happening and would like to learn more about it in language I can understand.

Wish I could help, but my knowledge is limited when it comes to mutual funds and the like. Something I would be interested in learning about though. Can anyone help her out?

but my knowledge is limited

and trust me.. She is not lying LOL

I seem to recall J posting an educated reply to someone else about investments and mutual funds. Maybe he can help?

As I understand the latest allegations, it appears that some brokers were allowing clients to buy funds at the price that was advantageous to them. Funds are priced once a day. I think it is set at 4pm and the market closes at 5. the illegality was that fund managers allowed certain clients to buy after this period or if the price went down, they would buy it at the earlier, or sell at the earlier better price.

I would love to hear from someone more knowledgeable.

To be honest, my concern is what has happened with the funds that I have invested in my 401K fund. Not knowing how the market works and not having anyone to ask how to invest my money, I have more or less allowed Putnam to take a percentage of my salary and do the investing for me. September 11th played havoc with our investments - as they did with anyone playing the market. But the quarterly reports I get from Putnam may as well be written in Chinese for all I can figure out - the bottom line being that every week I see a deduction from my paycheck but I don't see much of anything happening with the way it has been invested. My company apparently doesn't seem to be very concerned; if it was a really horrible situation, I would imagine they would have pulled out of Putnam and gone with another company. They are still there. I think what I'm worried about is another Enron scandal - and unfortunately, I live from paycheck from paycheck so up until going to work for this company and having this 401K program, I have not made any provisions for retirement. And who knows if there will be a Social Security available in 15-20 years when I go to retire.