Ty A. Bernicke does a nice job of summarizing the many costs associated with owning a mutual fund. Suffice it to say, the average mutual fund investor is needlessly giving away 30% – 50% (or more) of his annual returns. Read the full article here >>
Choosing a financial advisor can be an extremely consequential (and difficult) decision. Finding the right one can make a significant difference to your financial future. Finding the wrong one can have devastating consequences.
Unfortunately, many (most?) of the 300,000 or so financial advisors in the United States are simply financial salesmen with excellent communication skills and just enough knowledge of the financial marketplace to be dangerous. And, sadly, most of them work for the best-known Wall Street firms, banks and insurance companies (the part of the industry that those of us who are independent refer to as “the Dark Side”). Suffice it to say, while it’s very easy to find someone with “financial advisor” on their business card, it can be frustratingly difficult to find someone who can actually dispense objective financial advice at a reasonable price.
As Chuck Jaffe reports: “If you’re a fan of Vanguard funds, two announcements the company made this week should have come as good news.” Read the full article >>
Ya gotta love the way competition drives down costs. A Total U.S. Stock Market Exchange Traded Fund (ETF) can now be had for as little as 4 basis points (a basis point is 1 1/100 of a percent)! Read the full article >>
Three key quotes from the founder of Vanguard: 1) “The multiple failings of our flawed financial sector are jeopardizing, not only the retirement security of our nation’s savers but the economy in which our entire society participates.” 2) “Fund investors are confident that they can easily select superior fund managers. They are wrong.” 3) “The miracle of Read more about John Bogle’s Million Dollar Advice[…]
“Look at the bottom line once you do the math. With all charges subtracted from returns, you’ll probably lose 2.67% annually with actively managed funds, compared to a 2.61% advantage with index funds.” View the full article >>