Recs

0

Saving for Retirement: Should You Use ETFs or Mutual Funds?

In saving for retirement, mutual funds have been around for decades, while exchange-traded funds are the relative newcomer to the scene. But with both at your disposal, which is better for your retirement strategy?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at this question and goes through the differences between mutual funds and ETFs. Dan notes that mutual funds can be simpler and less expensive, with no-load funds carrying no commission and index funds often having rock-bottom expenses. But he also points out that you can only trade mutual funds once daily, while ETFs allow you to buy and sell whenever the market is open. The downside of ETFs, though, is that you have to pay a commission. But Dan urges anyone interested in ETFs to check with their broker to see if they offer commission-free ETFs, which have gotten more popular. In general, Dan concludes that you should look at total costs and that either ETFs or mutual funds can give you a successful retirement.

How to get even more income during retirement
Mutual funds and ETFs can play a key role in your financial security, but there are other ways 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: 2961938, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:37:06 AM

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...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 9 hours ago Sponsored by:
DOW 17,071.22 -41.93 -0.25%
S&P 500 1,977.80 -5.05 -0.25%
NASD 4,505.85 -6.34 -0.14%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement