What You Need to Know About Funds and Fees

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analyst Jason Moser takes a question from a reader who asks:

I have some cash to reinvest as the cash is sitting in my money market. I am 56 years old, and trying to set myself up for retirement. Recently an advisor gave me the Edward Jones prospectus that calls for a 1.4% load fee and monthly fees thereafter. My husband says this is too much money. What say you?

Fees can be an investor's worst enemy if not kept in check. Load fees and monthly fees thereafter will eat into your returns. Jason reminds investors only to invest in the stock market with money they won't need for at least five years. From there, one good place to start looking at different low-fee fund options is Vanguard. One of the keystones of the Vanguard philosophy is keeping costs for the individual investor low. On average, Vanguard mutual fund expense ratios are 82% lower than the industry average. While there are management, marketing, and administrative fees associated with any fund, Vanguard chooses to keep those fees low. Low fees and excellent performance over time win Vanguard loyal customers. Of course, Vanguard isn't the only option out there today, but it's certainly a good place to start shopping.

Watch the video below to find out more.

How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3036909, ~/Articles/ArticleHandler.aspx, 9/15/2014 9:04:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement