Tim Armour’s Insights On Retirement Funds

When we think of retirement investing, there is often a lot of confusion about which funds would give us the greatest nest egg when we have reached the end of our working years. Some investors, such as Warren Buffett, have claimed that fund managers will mismanage funds and that a better return could be earned by just investing in funds that mirror the S&P. He seems to be right this year. But then again, it is currently a bull market.

Tim Armour, an avid investor and fund manager says that Buffett’s views are very shortsighted. What investors should be looking at, claims Armour, is not just whether or not the funds closely follow an index, but how the funds are being managed and how high their expenses are. The downfall of a fund is not usually only its investments, but its high expenses and the fact that the managers have no buy in. Tim Armour says that investors should be moving their investments towards funds that have low expenses and high management ownership. This means that money is not being wasted in the fund and that the hedge fund managers will have an active interest in the fund itself.

Tim Armour graduated with his Bachelor’s degree in economics in 1982. He soon joined the Capital Group and has been working there ever since. Since starting, he has moved through the ranks as an equities analyst, fund manager, CEO, and Principal Executive Officer. He also is a Fund Advisor at Capital Research and Management Company and holds several board memberships, including on at Capital Group, Capital Research and Management Company, and the AMCAP Fund.

Through this wealth of experience, he has been able to steer investors to the funds that will provide them with the returns they want for retirement. Tim Armour is currently located in Los Angeles and continues to give back to his alma mater.

Reference: http://www.investmentnews.com/article/20150729/FREE/150729863/capital-group-parent-names-armour-chairman-replacing-rothenberg

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