What Should I Know When Buying Mutual Funds?



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Comments

  1. Dave is doing a great job in getting people out of debt, saving property etc. but he's just flat out wrong about mutual fund investing.
  2. Dave's investment advice is not for me. I rather listen to John Bogle and Warren Buffett.
  3. Dave is wrong about even messing with mutual funds with 1% expenses or loaded funds...they nearly always underperform index funds over long term, which many have expenses of less than 0.10%. Good luck finding the 5% of funds that outperform the index.
  4. where would I buy one?
  5. VITLX or something similar, you get a solid mix of indexing without all the fee's.
  6. Dave can show you how to get out of debt and practical things about managing your finances. However, when it comes to investing, he's probably not the best guy to listen to. Warren Buffett, the best investor probably of all time, puts it very simply regarding investing for the average person. Buy the S&P 500.

    A 1% maintenance fee is way too much. And brokers do not have to have their clients best interest in mind necessarily. If you simply buy the S&P 500 Through Vanguard Spyder Mutual fund or through ticker symbol SPY, which is an exchange traded fund that basically imitates the S&P 500, the management fee runs about .05% per year – much less than 1%!

    And the other thing, never sell it! Well, at least until many many years later after it has grown. You don't need a financial advisor or stockbroker to do this. And their assistance will add next to no value to your investing.
  7. In theory Vanguard no loads and ETF's will usually beat a loaded fund. The problem is once the market gets choppy investors tend to make emotional decisions and make irrational decisions where a "broker" can usually reason with them. You get what you pay for and I haven't heard a ton of people retiring to the south of France cause their Vanguard ETF's made them rich. If you want to rely on a 1-800 number with a call center plan your retirement be my guest
  8. Paying a financial advisor for a middle class investor is ridiculous. Read a couple books by John Boogle and buy a few index mutuals and ETFs. Saves you a tremendous amount of money in fees. Bad advise here by Ramsey.
  9. Dave is great until you are out of debt and have enough money to invest. Then stop listening to him. The index funds have commissions at .1%-.3% and no up front commissions. Under no scenario would a 5.75% load fund beat that. On top of that, there's so much evidence that index funds are the much better way to invest than actively managed funds over the long run. Lots of research.
  10. I am not an index fund purist...but paying a load is freakin' crazy. Forget paying a load....ever. Yes, you do need to watch the fees for no-load funds. The expense ratio should be 1% or less, preferably much less. Index funds are fine, too.

    Your broker will never steer you toward no-load funds from these companies:

    --Fidelity
    --T. Rowe Price
    --Vanguard (low cost leader)
    --Dodge & Cox (second lowest cost after Vanguard, but fewer fund choices).
    --Mairs & Power

    If you have a 401k plan at work, sometimes you can get into funds that normally charge a load, but they waive the load since it's a 401k plan.

    The "A", "R4", "R5", and "R6" share classes from American Funds charge reasonable to downright cheap fees (R6 being the cheapest) and their funds are good if you can get into any of these reasonable cost share classes without paying the load.
  11. This called sounds like the lawyer idiocracy.
  12. If you pay a 5 3/4 % load you are getting ripped off. Dave generally gives good advice, this segment isn't good advice.
  13. Quick tip. Do not EVER buy Mutuals. EVER. Buy a few ETFs, and you will be set.
  14. "feel free to interrupt me" Dave doesn't let anyone interrupt him lol
  15. Does anyone know what brokerages Dave recommends?
  16. Mr money mustache.
  17. I believe that , if the loaded fund isn't an outstanding performer, don't get it. Their are too many no load funds from t. rowe price and vanguard that are great performers with low ratio costs.
  18. One thing Dave doesn't tell the caller is that the typical financial advisor who charges 1% AUM most likely won't deal with you unless you have a substantial sum of money in the first place.
  19. Invest in low-cost Index funds and stay the course. A good total market or S&P 500 Index fund + a good bond fund for your appropriate risk level is all you need, both with low fees. Vanguard comes to mind first. I like Dave's preaching about staying OUT of debt, because in general... Debt is bad. But if you're really interested in learning about the market and how it works, there's no shortage of amazing books out there that will help guide you on your journey to become wealthy. Dave Ramsey preaches a great message, but he's no Bogle or Buffett when it comes to the stock market...
  20. And front funds haven't shown a consistent track record of beating index funds with small expenses.


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Visibility: 85017

Duration: 8m 26s

Rating: 766