A great idea!

If you have read any of my previous posts you will know I am not impressed with financial advisors and even less impressed with mutual funds. The problem is that they are not paid commensurately with their results.

As an investor I don't think someone else, someone supposedly helping me, should make more money off of my money than I do. I don't mind paying money, even more money, if I'm making money, but nothing pissess me off more than paying money while I loose money.  A fund operator should never ever ever make more money than the investor.

So, I have a great idea! I want to start a mutual fund or ETF that only collects a fee when it preforms and you make money.

It would work like this;
Say the fund charges a 2% fee. If the fund makes more than 2% the operator gets the full fee.  If the fund makes less than 2% the profit is split. If the fund looses money the fund operator gets nothing.

This way the goals of the fund operator are aligned with the investors. I wouldn't even mind paying a percentage more to get results.

I wonder if any mutual funds have balls enough to do it. Now, just to get an appointment with a ballsy mutual fund. Hmmm.

I've been watching the markets but have decided not to buy anything. Instead I'm going to take my money and pay down my home mortgage. I can do 20% a year so I'm doing 20% now and 20% in January. It won't quite be paid off, but it will be very very close.

While gathering the money I'm doing something which I think is quite clever. First, of course, I sold all my losers. Then I sold my principal investment in any stock that was flat or had increased but turned down. That gave me enough money for this round, but in January I'll need to sell my principal investment in some of my winners.