| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
Mutual Fund Commissions
You have heard about a particular mutualfund from a friend, saw it advertised on TV or readabout it in some publication thought it would bea good buy. Next you call your broker to get hisadvice before you buy because he is an expertand is there to help you make money. "Hello, Billy Sol (see Billy Sol Estes onGoogle), this is Joe Mushroom and I want to buysome XYZ mutual fund. What do you think?" "Joe, I was just thinking about you and wasgoing to call you, but first let me look up XYZfor you. Uh oh! Joe it has a high expense ratioof about 1 ½ per cent. I would not recommendthat for you." Billy Sol fails to mention that XYZ has no load (that's commission) so he would not makeany money if you bought it. There are thousands ofexcellent no-load funds that outperform the loadfunds. Billy Sol says the fund his brokeragecompany recommends is ABC and again fails tomention it has a 5% load (commission) and goeson to paint a beautiful picture of ABC and howwell it has done in the past 5 and 10 yearperiod. Furthermore the expense ratio is onlyone per cent which is savings of 33%. WOW! Joe thinks that sounds pretty good sohe lets Bill Sol buy ABC instead of XYZ. Let's seewhat really happened. Joe saves ½ percent per year on the expenseratio, but pays and extra 5% up front. Maybe I'mwrong, but if you divide ½% in 5% that goes 10time. In other words it is going to take JoeMushroom 10 years to makeup that 5% commissioncharge not counting what that 5% charge wouldhave made if it had been working in Joe'saccount for that 10 year period. What it boils down to is never pay commissionfor any mutual fund. If the broker will not sellyou a no-load fund then get another broker. Heis not trying to help you make money. He istrying to make money for himself and his companyand may tell you his company does not carry aparticular fund because they don't think it is agood. Hog wash. Another broker lie. It is yourmoney and you are entitled to buy any fund. Goto a discount broker who handles that fund andopen an account. It will save you a bundle overthe years and they are as safe an any big-namebroker. Advice from a financial planner is no better ifhe is making commissions. The smart method is tohave a fee based broker who has a winning trackrecord. Have any financial planner show you hismodel account. He should have one or maybeseveral model portfolios. Unless they make moneyevery year he is not a successful money advisor.Don't let them hoodwink you about theirperformance "is better than the S&P500". That'snonsense. You want to see a cash increase everyyear. The first and basic rule is never paycommissions for any mutual fund. Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know. Copyright 2005
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
The Stock Trading Plan - Why You Must Have One To Trade Successfully This is the continuing story of our two imaginary traders, Peter and Paul.Peter is a professional trader, Paul is not. Market Success Who are the successful investors?There are those who follow the advice of their brokers and financial planners or those who choose to use their own good judgment? If you care to compare the results of the past 4 years from 2000 to now I believe you will see who as done the best job.In the old days at the Chicago stock yards they used to have an old sheep who led the lambs to the slaughter when they arrived on the train. Alfred E. Newman What! Me worry?Many of you remember the cover of MAD magazine. It was one of my favorites. Parachute Investing Ever jumped out of an airplane? It's OK ifyou have on a parachute. Pretty dumb if you don't. Bottoms Ups If you have talked to a stock broker or financial planner in the last few days I will bet they all agree that there are some great bargains out there and now is the time to start buying in anticipation that the market will go back up. You will also find agreement from the talking heads on CNBC and those talk radio station stock mavens. Picking Mutual Funds to Outperform the Market With over 6,000 mutual funds available, it may be tempting to pick funds from a popular star or index rating system. Savvy investors, however, balance multiple factors in their selection process. Pamplona, the Wild Investment Bulls You remember (they show it on TV every year)the running of the wild bulls in Pamplona,Spain. Some of the nuttier people get out theircapes and stand in their path as they comeroaring down the street. Why Change Funds? On November 17 I bought 7 different mutual funds and went to a 100% invested position. One of the funds I bought was Robertson Stevens Information Age (RSIFX) and it has made money as have the other six. Can't Stand The Heat It seems that every day I turn on the TV and find a Poker game. Texas No Limit seems to be all the rage these days. Trading Tips No 8: Picking the Best Stock Market Price Carefully thinking through your goal as a trader is of prime importance, when picking the best stock market price. It is very difficult if not impossible to meet a goal that is ill defined. Online Investing & Online Stock & Share Trading: Difficulty in Taking Stop Losses in the Market This is an extract of an article which was first printed in Daryl Guppy's Newsletter Tutorials in Applied Technical Analysis on 26 March 2005 and is reprinted here with his permissionA stop loss is a predetermined exit point. When a trade is first planned, the stop loss is designed to protect the trader's capital. Trapeze Artist - Swinging with the Stock Market When we go to the circus we see a trapeze artist working on a high wire or swing either alone or with other athletes. They know what they are doing because of constant practice, but every once in a while there can be a mistake, even a small one that can cause one of them to fall. The Surgeon General The Surgeon General of the United States says that smoking cigarettes is harmful to your health. It is printed on every pack of smokes you buy. Where Is The Rabbit? We need a rabbit!This was a pretty horrible week for the market with two 100-point days and Friday closing on the lows.During these past few days Sir Alan told us things are looking up and the economy is basically strong. You Don't HAVE To Be Trading As a novice trader, you'll often feel the need to trade.You may be bored or frustrated. Stocks & Oil, Sat Jun 18th, 2005 Both the stock market and oil prices rallied recently, which seems to be a paradox, because high oil prices are negative for earnings (i.e. Protectionism First let's see what protectionism is. According to Mr. Successful Trading - Establish Your Risk Level Before you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed from the start. Frog In The Pot You remember the story about the frog that was put into a pot of cold water on the stove. Hewas not concerned. Social Insecurity Just about everything you have been told about Social Security is an obfuscation. That is a big word for convoluted truth or lie.
|
Sponsors: Chicago Paving Contractor | Remanufactured VTL | Religious Statues | Search Engine Specialist
