What You Need to Know About Funds and Fees

Not all funds are created equal. Investors should pay attention to the fees involved before committing their hard-earned money.

Jul 21, 2014 at 2:22PM

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.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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