September 27, 2013
The financial industry pays their salespeople (financial advisors, brokers, insurance agents) via loads. Types? Should you pay them?
The financial industry pays their salespeople (financial advisors, brokers, insurance agents) via loads. Types? Should you pay them?
Load managed mutual funds, individual stocks, commodities, life insurance, annuities, etc. No, you should not pay them. You should buy no-load index mutual funds at Vanguard, instead.
Pretty close, Katherine. The loads come in the form of letters. Class A refers to commissions (loads) when you buy. Class B refers to commissions when you sell. Finally, Class C refers to commissions while you own the fund. Should you pay them? No.
Buy no-load index mutual funds at a place like Vanguard and bypass all of the commissions, which means you bypass the salespeople who get them. You can learn more by reading some wonderful books on investing. The Little Book of Common Sense Investing by John Bogle, The Four Pillars of Investing by William Bernstein, and A Random Walk Down Wall Street are three wonderful books that will enlighten and entertain. Believe it. Believe in YOU!!!!!!!