What are you paying for? Mutual Funds
July 26, 2017
I’m Miriam Neff-with STARTING OVER FINANCIALLY,-and I’m Valerie Neff Hogan, and we’re here to talk about money
M Do you know what you are paying for? Yes we want to pay our taxes, our bills, be responsible. But we might be paying for something unnecessary. Mutual funds are a popular investment, a costly one. You are paying people to actively manage, buy, sell, attempt to make money with your money.
V They get paid whether they make money for you or not. Typical costs are 2 percent whether paid up front or over time. What we now know is that indexed fund cost less and outperform mutual funds.
M If you cut those costs by 1% per year, over time that’s a huge savings, or a reinvestment opportunity. Its God’s money on loan to you.