August 9, 2013

In the world of investing, churning goes on all of the time. What is it? How can you avoid it?

2 thoughts on “August 9, 2013”

  1. Macala says:

    People buy and sell stocks trying to “time” it to get the highest return. Stocks will rise and fall regularly and trying to chase the money is not a good idea. Instead, Buy no-load index mutual funds. Research tells us you will come out way ahead of the vast majority of investors by simply owning the markets and feeding your account monthly through an automatic contribution. It will be stable and over the long run you will come out a head. Plus you dont have to have the headache of trying to time the markets — you can relax a little more!

  2. Mike Finley says:

    That was a GREAT answer, Macala. Let’s recap. Churning takes place when the “smart” financial “expert” (financial advisor, broker, life insurance agent, etc.) keeps buying and selling with your money as they earn high commission through the process. They explain this manic behavior by stating the economy has changed, the market has changed, YOU have changed, bla, bla, bla. The truth is they make a lot more money buying and selling than they do by sitting still like Macala talked about. This is why you should avoid these commission based salespeople.

    Follow Macala’s advice and buy those boring and efficient no-load index mutual funds at a place like Then, just keep feeding those funds month after month, year after year, decade after decade. Financial freedom will follow!

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