March 6, 2015
Wise and efficient investors never pay loads. Explain what A, B, and C loads are? How can you avoid them?
Wise and efficient investors never pay loads. Explain what A, B, and C loads are? How can you avoid them?
Class-A shares charge a front-end load that is taken off your initial investment. Class B these shares are classified by their back-end or contingent deferred sales charge. Class C shares are a type of level-load fund that is a mix of both. If you use no load index funds at Vanguard you will have no loads aka commissions.
Well said, Garrett. You covered the point quite well. Let’s review.
NEVER pay a load (commission) when investing your money. That means avoiding the financial helpers (investment brokers, financial advisors, life insurance agents. etc.) and going straight to a place like Vanguard when investing outside of your company retirement plan. When you are there, identify the very cheap and efficient index funds. Buy what is right for you and then feed those accounts month after month after month. Financial freedom will follow!