Mutual Funds

I’m Miriam Neff, and I’m Valerie Neff Hogan, with Wise Women Managing Money.

M Do you know what you are paying for?  Yes, we want to pay our taxes, our bills, be responsible.  But we might be paying for something unnecessary.  Mutual funds are a popular investment, a costly one.  You are paying people to actively manage, buy, sell, attempt to make money with your money.

V They get paid whether they make money for you or not.  Typical costs are 2 percent whether paid up front or over time.  What we now know is that indexed fund cost less and outperform mutual funds. 

M If you cut those costs by 1% per year, over time that’s a huge savings, or a reinvestment opportunity.  It’s God’s money on loan to you.