Invisible Mutual Fund Fees Erode Your Returns!
Many investors think that investing in mutual funds is free. What nonsense! Funds collect more than $50 billion a year in fees from investors. That is truly a ton of money. The first way you get hosed in a mutual fund is due to high fees charged. These fees can dramatically reduce your returns over time!
The way that these fees are deducted automatically from a fund's returns makes them invisible because you never see an invoice or have to write a check. If you invest $10,000.00 in a domestic stock mutual fund with an expense ratio of 2% and a sales load of 3%, and let's imagine that you get annual returns of 7.5% for twenty years, your money would almost triple to $27,508.00.
The bad news is that you would have lost $14,970 in fees and foregone earnings over the twenty years. Yikes?that really hurts! Why not just bypass the system and buy your own stocks as I teach finance students and home study investors? These funds are also sold and managed on pure hype, short term trading, and with key information withheld from the public.
All of these factors I teach finance students and investors to avoid! The industry confuses investors by focusing on past performance, which should not be a factor to consider. Many mutual funds are able to cheat the public with excessive fees because investors don't understand how these big costs destroy their profit. Mutual funds have no interest in educating investors because it is easier to hoodwink the ignorant!
Don't put your trust in mutual funds unless they are fully indexed. Indexing means that the mutual fund simply uses a computer to buy and sell stocks in the mutual fund portfolio so as to mimic the composition of a major stock market index like the S&P 500. This means that there is no fund manager sucking out needless fees. A good example is the first fully indexed mutual fund called the Vanguard 500 (VFINX) which is also now the largest of its kind.
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. "The Wallet Doctor", is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors by teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term "Irrational Exuberance." In 1998 he shouted to the world to "get out" of the stock market but now he is shouting to everyone that it is time to "get in!" The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. Visit Dr. Brown's site at http://www.BonanzaBase.com or sign up for his investment tips at http://www.WalletDoctor.com
Is Fomo the new greed when it comes to investing? Financial Times
These money and investing tips can help you know when the bull market has come back to stay - MarketWatch
These money and investing tips can help you know when the bull market has come back to stay MarketWatch
Investing In 2023: Trends And Statistics Bankrate.com
How FLQM Uses 4 Factors in Mid-Cap Investing ETF Trends
Top Investing Trends of 2022 GOBankingRates
Investing In Robotics: Why Now Could Be The Right Time Seeking Alpha
Should you hate ESG investing? I don't think so. Northeast Mississippi Daily Journal
FTX Collapse: Lessons for Investors The Motley Fool
sustainable-signals-sustainable-investing-opportunities Morgan Stanley
Everything You Need To Know About Gender Lens Investing (and Why You Should Be Doing It) - GOBankingRates
Everything You Need To Know About Gender Lens Investing (and Why You Should Be Doing It) GOBankingRates
15 Good Stocks to Invest in Right Now Yahoo Finance
Markets Begin to See Light at the End of the Tunnel Investing.com
WBS PhD Seminar: Investing in Mutual Funds: Exploiting the Cross-sectional Predictability in Fund Performance by Dr. Xin “Shane” Gao - WPI News
WBS PhD Seminar: Investing in Mutual Funds: Exploiting the Cross-sectional Predictability in Fund Performance by Dr. Xin “Shane” Gao WPI News
Alameda Research invested $1.15B in crypto miner Genesis Digital: Report By Cointelegraph - Investing.com
Alameda Research invested $1.15B in crypto miner Genesis Digital: Report By Cointelegraph Investing.com
Florida Pulls $2 Billion From BlackRock Over ESG Investopedia
42% of Americans Say a Lack of Money Is a Barrier to Investing. This Brokerage Account Feature Can Help You Overcome That - The Motley Fool
42% of Americans Say a Lack of Money Is a Barrier to Investing. This Brokerage Account Feature Can Help You Overcome That The Motley Fool
Learn from FTX and stop investing in speculation Cointelegraph
Boring is Beautiful in Investing A Wealth of Common Sense
3 Growth Stocks That New Investors Should Own for 2023 The Motley Fool
How to Invest With Little Money NerdWallet
1 Reason Investors Should Have Confidence in Bitcoin The Motley Fool
Meet the VC who was a ‘horror story’ for Sam Bankman-Fried and why he passed on investing in Alameda Research - Fortune
Meet the VC who was a ‘horror story’ for Sam Bankman-Fried and why he passed on investing in Alameda Research Fortune
Bitcoin and Ethereum Still Seeking Upside Breakouts Investing.com
1 Great Reason to Invest in the Stock Market Right Now The Motley Fool
Moonbase Fund targets a first closing of €5m, studying investing in two Egyptian companies in the industrial sector - Daily News Egypt
Moonbase Fund targets a first closing of €5m, studying investing in two Egyptian companies in the industrial sector Daily News Egypt
Does CrowdStrike’s 40% Plunge This Year Make It a Buy? Investing.com
Three things crypto investors need to know in a post-FTX world, according to financial advisors - CNBC
Three things crypto investors need to know in a post-FTX world, according to financial advisors CNBC
Opinion | The Best 50-Year-Old Investing Advice Money Can Buy The New York Times
Critical Investing Mistakes Investors Should Avoid Right Now The Motley Fool
Investing in Ermenegildo Zegna (NYSE:ZGN) a year ago would have delivered you a 12% gain - Simply Wall St
Investing in Ermenegildo Zegna (NYSE:ZGN) a year ago would have delivered you a 12% gain Simply Wall St
Josh Wolfe on Investing in American Defense War on the Rocks
Opinion: Ron Baron explains his investing philosophy with goal of doubling his money every 5 to 6 years - CNBC
Opinion: Ron Baron explains his investing philosophy with goal of doubling his money every 5 to 6 years CNBC
Six Investors Chasing Debt Deals During the Downturn The Information
10 Common Investing Mistakes That Can Easily Be Avoided Kiplinger's Personal Finance
Nasdaq 100 May Need to Dip Before Rallying Again Investing.com
Investments in Nature-based Solutions Need $674B a Year by 2050 CarbonCredits.com
Viewpoint: Baltimore Community Foundation CEO on why impact investing can make a difference - The Business Journals
Viewpoint: Baltimore Community Foundation CEO on why impact investing can make a difference The Business Journals
Morningstar MOAT ETF: Invest In Wide-Moat U.S. Equities Seeking Alpha
If You Invested $1,000 in Aurora Cannabis In 2018, This Is How Much You Would Have Today - The Motley Fool
If You Invested $1,000 in Aurora Cannabis In 2018, This Is How Much You Would Have Today The Motley Fool
Looking for stock bargains? Consider Vvalue investing cleveland.com
If You Invested $10,000 in Microsoft Stock When Satya Nadella Became CEO, This Is How Much You'd Have Today - The Motley Fool
If You Invested $10,000 in Microsoft Stock When Satya Nadella Became CEO, This Is How Much You'd Have Today The Motley Fool
Real estate investing 'created this life of freedom': Michigan couple brings in $11,000 a month for only 2 hours of work - CNBC
Real estate investing 'created this life of freedom': Michigan couple brings in $11,000 a month for only 2 hours of work CNBC
HP Inc.: Are Layoffs Enough to Save Stock? Investing.com
Discover why Cambodia is investing in human development World Economic Forum
Silver: Investors Ignoring The Supply-Demand Imbalance? Seeking Alpha
BlackRock's Larry Fink Shows Just How Ridiculous GOP Fearmongering About Sustainable Investing Really Is - The New Republic
BlackRock's Larry Fink Shows Just How Ridiculous GOP Fearmongering About Sustainable Investing Really Is The New Republic
Is Now a Good Time to Invest? Ask Yourself These 3 Questions. The Motley Fool
There’s Reason Elon Musk Wanted to Buy Glencore Investing.com
The Black Investors Who Were Burned by Bitcoin The Atlantic
Investing Action Plan: Blue Chips, China Stocks On Radar As Dow Eyes 35000 - Investor's Business Daily
Investing Action Plan: Blue Chips, China Stocks On Radar As Dow Eyes 35000 Investor's Business Daily
Investing in Equals Andreessen Horowitz
Why Investors Were High on These 2 Marijuana Stocks Today The Motley Fool
Trading Commodity Futures Using Support and Resistance - Paper Trading
Setting Up a Paper Trading AccountQuestion:I cannot trade with "real money" as yet; however, how do I go about setting up a paper trade account?Answer:You can paper trade various ways and it really does not require that you have anything more specialized than a notebook to track your trades and access to charts.Begin by funding your paper trading account with the amount of money you think you will really begin with, whether it is $2000 or $20,000.
Bearish or Bullish?
If you are interested in stock investing and the stock market, you may have plenty of questions. Even if you have already started investing, you may still have many questions about the details of the stock market and your options.
Copy Cat or How to Use a Successful Trading System
How many books have you read about successful traders? How they did this or that and made a fortune and are still doing it. You say to yourself, "I'm going to follow his method and get rich".
The Realities Of Market Timing
Market timing systems are based on patterns of activity in the past. Every system that you are likely to hear about works well when it is applied to historical data.
Why the Rich Keep Getting Richer
Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated, caring, brilliant individuals? Becoming rich isn't hard, but it does require a bit of time and knowledge. Having time to get rich, educating oneself, and buying assets are the three key factors in attaining untold wealth.
Foreign Investing - US Investors Still Missing Out?
Investors are still too slowly realizing what the academics have long pointed out -- adding foreign stocks to your portfolio will, over the long term, increase your returns and lower the overall risk of your portfolio.US investors embracing foreign investing are both realists and optimists.
Finding a Broker
"Hey Joe! I need help finding a broker. I notice that discount commission rates are pretty much the same.
The Convertible Craze Brightens The Future Of Equities
Convertibles are stealing the show with their safe investment image in today's "protective" market. They seem to be overshadowing the stocks and bonds, and this holds true for the mediocre issuers.
You know all the articles you read about annuities that have extremely high fees? And the ones that people lose a lot of money in? Well, these are better known as variable annuities. yes, they do have some advantages.
Wit and Wisdom on Money, Wall Street and Success - Part #1
I love to collect quotes as they concisely promote a philosophy which is readily understandable.In my 25+ years of investing I have collected hundreds of quotes related to Wisdom, Wall Street and Success.
Rules of Simple IRA Your Business Needs to Know
A Savings Incentive Match Plan for Employees plan, better known as a SIMPLE plan, is an IRA-based retirement plan available to employers with fewer than 100 employees.Under a SIMPLE IRA plan, an employee can contribute a portion of his pay to his SIMPLE IRA account.
How to Use Annual Report
There are many steps in calculating the fair value of a company. However, before we even do that, it is imperative to know how a company earns its profit.
Art Investing for a Financial Future
When we think of investing we probably conjure images in our minds of the New York Stock Exchange, suited stock brokers making deals, bonds and treasury bills, and all manner of financial matters. The last thing we probably think about is art.
Retirement or Financial Freedom?
In the past most people never retired. They died.
Success Trading: Yet More Basic Terminology for New Traders
In this day and age of online brokers for virtually every market out there, there are some very useful tools that will help protect your account and lock in profits when you have them. It is our recommendation that you use a good online broker and take advantage of not only the low commissions they offer, but also the automated tools that are available.
Porters Five Forces Analysis
If you've ever listened to Warren Buffett talk about investing, you've heard him mention the idea of a company's moat. The moat is a simple way of describing a company's competitive advantages.
Effective Advice For A New Generation of Investors
CATCHING A FALLING KNIFEOne of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is a habit, common among new investors, of buying stocks that are in "freefall", and it's a bad idea for an investment strategy.
Creating a Financial Future - Putting Your Plan Into Action Part 1
This column has previously discussed "picturing the future that we desire", and outlining a plan to achieve it. We mentioned that the plan must include goal-setting, measurement, and implementation.
Beta Factors: How They Can Be Used In The Current Situation
Ever since the turn of the century, world stock markets have been very volatile. In other words there have been significant movements (up or down) in share prices.
Asset Allocation Lessons: The 70% Inflation Solution
For investors only..
|home | site map|