Go to: www.personalfund.com to learn the cost of the funds you use in your investment portfolio.
ETF's are often less expensive than actively-managed mutual funds, however, when compared to indexed mutual funds they may be more comparable.
One disadvantage often overlooked for those choosing ETF's over an indexed mutual fund is that you cannot reinvest dividends, gains and interest. These additions will end up in your money market core account at your brokerage firm and then you will have to decide how to re-invest these funds. If you re-invest in the ETF, then each purchase requires another commission to be paid so it would be better to do this after large quantities have accumulated. In a mutual fund, this can be done for you automatically and at no additional cost.
Do not overlook dividends. These represent 2% now of the return of the S&P 500 and over 10 years is the difference of more than 20% compounded. It is important and it is a disadvantage of ETF investing not often mentioned by those selling them.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.