[Muncle]

Hey Boomer, Caroline, or anybody else, do you know anything about a new Third Avenue Mutual Fund, Focused Credit Fund Investor Class
(TFCVX). I don't know diddly, but 3rd Avenue's been fairly good and I was just wondering.




`

[Boomer]

Originally Posted by Muncle

Hey, Boomer, Caroline, or anybody else, do you know anything about a new Third Avenue Mutual Fund, Focused Credit Fund Investor Class
(TFCVX). I don't know diddly, but 3rd Avenue's been fairly good and I was just wondering.
`

You rang, Munc? You rang.

First of all, just a minute, while I insert my little disclaimer right here. Disclaimer: Boomer is not a financial adviser in any professional way, shape, or form. Boomer has no alphabet designations behind her name that say she can give professional advice about money. Boomer is a mere bumpkin, living in Cincinnati, world headquarters for the Boomerfund which she has under management. (Boomer will be returning to TV for further recon for a possible second home there.) The Boomerfund has only one investor, besides Boomer herself. That one investor is Mr. Boomer. (He still likes her.) There have been rumors around these parts (TOTV) that Boomer may actually be an English major.

OK, Munc, I just had to make sure everybody knows that I have no idea what I am talking about. So now, back to your question.

When I am asked a question about money (and that actually happens to me in real life, too, once in a while) I have a policy that I never tell anybody what they should buy. I just try to help them see some things that they need to figure out before they decide for themselves.

I looked up the fund you asked about. I just took a quick glance and did not find the description or history of the fund or the top holdings. That does not mean that info was not there. I did not click around much because I immediately saw a couple of things that I could start with, in the question department.

It does say that the fund is a no-load. A no-load fund still has associated costs to the investor, even though it does not exactly have a commission built in. If I am looking at the correct fund (please tell me if I am not) I see an expense ratio of 1.40%. That looks like one honkin' expense ratio to me. How do they convince you that they are worth it? Ask yourself that question and the answer will tell you a lot.

The other thing I see is that redemption fee of 2% if you want to exchange or redeem shares held less than one year. You can get in, but you can't get out, during that time period, not without it costing you a chunk of the investment. Ask yourself if you are willing to marry that fund for a year or if you do and then find that you don't want to hang around that long, are you willing to pay some serious alimony?

(Well, Munc, I have some more to say, but I am going to send this part for now. I will be back later. I rarely compose in "Word" for posts and I will probably lose this post if I do not hit "submit" soon. Not composing in "Word" before pasting long posts to TOTV is about the extent of my walking on the wild side. So that should indicate the kind of investor I am. -- at this point in my life anyway.)

Seeya later for Part II.

Boomer

[Boomer]

Here's Part II to the above: (See disclaimer in that one.)

Munc, one of the things that you need to know about my view of things when it comes to money-management is that I have not yet managed to relinquish control to a professional. I am a bit of a freakazoid about that. I also know that someday I might need to get over that and try to find the financial adviser of my dreams. You may have seen me say on here, in posts past, that I do fear that someday I could end up throwing all caution to the wind and investing everything in Beanie Babies and Pez dispensers. Or maybe a little Franklin Mint. I am not saying that I might never need help. I just have not found it yet.

I subscribe to a "Know Thyself" mode of investing. And it is not that I do great stuff, it is just that I tend to be exceedingly, annoyingly, excruciatingly responsible about some things. And I know that if a bad financial call is made, I would have rather made it myself so that I would have only myself to blame. (Weird huh. But that's how I am.)

I also tend to ask a lot of questions. I have done that all my life. My mom used to tell me that I could ask more questions than a Philadelphia lawyer. And then I would ask her to explain to me why the lawyer was always from Philadelphia.

So anyway, that's just me.

For those who have built a relationship with a professional adviser who is trusted, and has come through recent times in a reasonable manner, that relationship is certainly something to be respected. Buying funds through such an adviser may work out well. Of course, there are associated expenses, but maybe the expenses are well worth it. That is for the investor to figure out.

I have used mutual funds through Fidelity but have been out of them for a while. Those also have some expenses associated. All mutual funds do.

Even though I say that I do not have a financial adviser, I need to qualify that statement. I hold hands with my CPA. The tax consequences or advantages of certain kinds of investments can get a little complicated. Holding mutual funds in tax-deferred accounts can be different than holding them in taxable accounts sometimes. You really need an accountant to explain all that.

Also, Munc, I think that people in our age group should build a moat around money that they think they might need. Or that they cannot stand the thought of losing. The market is tooling along right now, but I still am of the opinion that all bets are off.

Even though it can sting to see barely any return on CD's and to know that inflation will devour that quickly, the principal remains intact. And as we get older, the principal of the thing becomes more and more important. So I build a moat. I am in the market. but not completely. I have to keep something in the Sleepatnightfund which is a part of the Boomerfund.

The economy is still a mess as far as I am concerned. I do not care what the Ministry of Doublespeak is saying on CNBC and Bloomberg and Co. Maybe it is good sometimes to have a long term memory that is far superior to my short term memory. I try to be really careful, but who knows. I try hard to completely understand what I am buying when I buy in. As I have said on here before, Kraft is my recent thrill ride.

Well, Munc, I probably just told you more than you ever wanted to know. And, besides, I am starting to look over my shoulder, worrying that I can see an army of professional financial advisers, coming after me, swinging big leather briefcases over their heads in a threatening manner. (What is it you call that weapon that is on the end of a chain and enemies swing it before bopping each other? -- can't remember what it is called. But that is how they are swinging their briefcases. I gotta get outa here. Seeya.)

Boomer

[graciegirl]

Boomer. I am so impressed. Will you please hurry up and move down to TV next door to me so I can pick your brain.

I will ask the people who currently live next door to me to move.

[Boomer]

Part III:

Hey Munc,

I just now did a little more snooping on this fund and found this list of articles from their website. It looks like they are getting lots of press right now.

http://www.thirdavenuefunds.com/ta/news.aspx

You may have already seen this stuff. I did not read any of these articles. So far I have looked only at the cost of doing business with them. That is always my first stop.

I hope you do not think I am giving you a homework assignment or something. I promise I am really not doing that. Just curious about this fund. It is probably not for me, but that does not mean that others would not like it. I don't know anything about this kind of debt investment. But I sure got to wax on and on about some overall philosophy so thanks for asking, Munc, and I hope maybe this helped a little.

Boomer the Boring

[Muncle]

Boomer, I know absolutely nothing about debt investment Most of my funds are tied up in mortgage payments and food. And when I do invest. I'm not a trader, more of a buy (or inherit) and forget I have it -- witness my Torotel (trading below a penny, I expect) and Lucent (which I inherited at over $72.00). Still got 'em.

I bought some 3rd Ave Value several years ago and they did me good except for the occasional "Oh my God, the stock market is crashing" time. Not enough invested to buy Deb's house in Bridgeport and not enough to really hurt if I lost it all, but enough to maybe include the obnoxious nephew in my will if it held it's own. To date, despite this Spring, he's in and maybe even his bitchy sister.

I saw this new Third Avenue offering as a ground floor chance to risk again a losable amount -- $2,500 minimum. I really hate to say this, but to me right now it's almost like chug-a-lug. Put my money down and spin the contraption. Don't know what I'll do. It's too far to drive to one of the Seminole casinos and put a bundle on red.



`

[Boomer]

Originally Posted by Muncle

..............

I saw this new Third Avenue offering as a ground floor chance to risk again a losable amount -- $2,500 minimum. I really hate to say this, but to me right now it's almost like chug-a-lug. Put my money down and spin the contraption. Don't know what I'll do. It's too far to drive to one of the Seminole casinos and put a bundle on red.
`

Good morning, Munc,

I tend to compartmentalize money, 'mentalize' is the operative part of that word. In my head, I know what money can come out of whatever "compartment," so to speak. And one of those compartments is the "Whatthehellwhogivesa****" compartment.

Cincinnati does not have casinos but Cincinnati is next door to Indiana and there are casinos there. There is a casino fairly close to Cincy. That Indiana casino, officially located in a small town, Lawrenceburg, Indiana, is on a boat in the Ohio River, the river which I have always heard actually belongs to Kentucky. (Geez. What can I say? We Cincinnatians are a multi-faceted people -- or maybe we are just into transporting ourselves across state lines for certain purposes.......but I digress......and I could digress some more.)

Anyway, Munc, casinos just don't call to me. But that's just me. I have been there a couple of times, for dinner, with a group, and a little touch of the casino itself. But I limit myself to twenty bucks, the slots, that's it. (I have heard that there are those who sit at the slots wearing adult diapers so that they do not have to leave those machines. Oh well. I am not judging them. To each his own. I am just glad they have the foresight to wear diapers. Geez. Munc, I am digressing once again. Imagine that.)

So back to the $2500 risk you are willing to take. I have a playmoney compartment. And I think that later I may just have to read those articles about this fund........or should I just "go to the boat" -- as we say here in Cincinnati. Some say, "Hey, let's go throw some money in that river," when they invite you to go with them to the boat.

Munc, I gotta tellya. I like your idea a lot better than the boat. With the money in a brand new fund, the "hope that springs eternal" would sure last a lot longer than the spin of a wheel or a go-round with a one-armed bandit. In my mind, your way is better, Munc. (Gee. I guess they won't let me in for twenty bucks though. But everything is relative. And a percentage is a percentage.........I hearya, Munc.)

Boomer