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Brain-dead Mutual Fund Selection
About this time every year, the personal finance magazines will perform an annual ritual: Looking at how mutual funds have performed over the past year--and then using that information to suggest which mutual funds you should pick for the coming...

How to Be a Forbes 400 Billionaire... By Investing in Only One Stock
"I make more money giving advice than taking it." ~ Malcolm Forbes The Forbes 400 Richest People in America issue just arrived in my mailbox last week... I pay careful attention to this issue when it comes out every October, for two...

It's Stocks, Not Markets, that Bring Investment Success
It's Stocks, Not Markets, that Bring Investment Success by Gabriel Nijmeh If you are fairly new to investing and looking for some guidance or if you are seasoned investor, let me introduce you to NAIC. National Association of Investors Corporation...

Tax Deduction Software - Calculate Your Earnings
We all love computers and the fact that it exists to make our jobs simpler. And they have invaded the field of taxation like never before. A multitude of tax deduction software is available in the market at dirt cheap prices. 1. for complex...

The Three Different Types Of Income You Must Know
Let us take a look at the different types of income. They are: 1. Earned Income obtained from working for someone or a company. 2. Passive Income income generated from business. 3. Portfolio Income income generated from investments in...

 
SECRET FEES MAKE MUTUAL FUNDS BILLIONS AT YOUR EXPENSE!

Many investors think that investing in mutual funds is free. What nonsense! Funds collect more than $50 billion a year in fees from investors. That is truly a ton of money. The first way you get hosed in a mutual fund is due to high fees charged. These fees can dramatically reduce your returns over time!

The way that these fees are deducted automatically from a fund's returns makes them invisible because you never see an invoice or have to write a check. If you invest $10,000.00 in a domestic stock mutual fund with an expense ratio of 2% and a sales load of 3%, and let's imagine that you get annual returns of 7.5% for twenty years, your money would almost triple to $27,508.00.

The bad news is that you would have lost $14,970 in fees and foregone earnings over the twenty years. Yikes.that really hurts! Why not just bypass the system and buy your own stocks as I teach finance students and home study investors?

These funds are also sold and managed on pure hype, short term trading, and with key information withheld from the public. All of these factors I teach finance students and investors to avoid! The industry confuses investors by focusing on past performance, which should not be a factor to consider. Many mutual funds are able to cheat the public with excessive fees because investors don't understand how these big costs destroy their profit. Mutual funds have no interest in educating investors because it is easier to hoodwink the ignorant!

Don't put your trust in mutual funds unless they are fully indexed. Indexing means that the mutual fund simply uses a computer to buy and sell stocks in the mutual fund portfolio so as to mimic the composition of a major stock market index like the S&P 500. This means that there is no fund manager sucking out needless fees. A good example is the first fully indexed mutual fund called the Vanguard 500 (VFINX) which is also now the largest of its kind.

About the Author
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful investor. Dr. Brown holds a Ph.D. in finance. The Wallet Doctor is sought after for investment advice and coaching. For more information visit Dr. Brown's site at www.BonanzaBase.com or sign up for his investment tips at www.WalletDoctor.com