NEVER pay a commission (load); stick with no-load index mutual funds. All fees (expense ratio) should be under .3%. You can find no-load index mutual funds and fees that meet the previous criteria at Vanguard.
A load (commission) is paid to a financial advisor, broker, life insurance agent when you use them to buy your investments. This is a mistake and it should not be done. By going around these “helpers” you will avoid paying commissions. Follow Katherine’s advice: NEVER pay a commission.
Fees are how large investment financial companies make a living so to speak. An easy approach is to identify the cheapest funds (no-load index funds) and steer clear of the more expensive ones (everything else). Just as Katherine stated, Vanguard.com does this better than anyone I know of. Keep those yearly costs (expense ratio) below .3% (30 basis points) and I would encourage you to work at getting them down to .1% (10 basis points) or less. Your future returns will thank you!
NEVER pay a commission (load); stick with no-load index mutual funds. All fees (expense ratio) should be under .3%. You can find no-load index mutual funds and fees that meet the previous criteria at Vanguard.
Right again, Katherine. Let’s recap.
A load (commission) is paid to a financial advisor, broker, life insurance agent when you use them to buy your investments. This is a mistake and it should not be done. By going around these “helpers” you will avoid paying commissions. Follow Katherine’s advice: NEVER pay a commission.
Fees are how large investment financial companies make a living so to speak. An easy approach is to identify the cheapest funds (no-load index funds) and steer clear of the more expensive ones (everything else). Just as Katherine stated, Vanguard.com does this better than anyone I know of. Keep those yearly costs (expense ratio) below .3% (30 basis points) and I would encourage you to work at getting them down to .1% (10 basis points) or less. Your future returns will thank you!