Mutual Fund Commissions

You have heard about a particular mutual fund from a friend, saw it advertised on TV or read about it in some publication thought it would be a good buy. Next you call your broker to get his advice before you buy because he is an expert and is there to help you make money.

"Hello, Billy Sol (see Billy Sol Estes on Google), this is Joe Mushroom and I want to buy some XYZ mutual fund. What do you think?"

"Joe, I was just thinking about you and was going to call you, but first let me look up XYZ for you. Uh oh! Joe it has a high expense ratio of about 1 ? per cent. I would not recommend that for you."

Billy Sol fails to mention that XYZ has no load (that's commission) so he would not make any money if you bought it. There are thousands of excellent no-load funds that outperform the load funds. Billy Sol says the fund his brokerage company recommends is ABC and again fails to mention it has a 5% load (commission) and goes on to paint a beautiful picture of ABC and how well it has done in the past 5 and 10 year period. Furthermore the expense ratio is only one per cent which is savings of 33%.

WOW! Joe thinks that sounds pretty good so he lets Bill Sol buy ABC instead of XYZ. Let's see what really happened.

Joe saves ? percent per year on the expense ratio, but pays and extra 5% up front. Maybe I'm wrong, but if you divide ?% in 5% that goes 10 time. In other words it is going to take Joe Mushroom 10 years to makeup that 5% commission charge not counting what that 5% charge would have made if it had been working in Joe's account for that 10 year period.

What it boils down to is never pay commission for any mutual fund. If the broker will not sell you a no-load fund then get another broker. He is not trying to help you make money. He is trying to make money for himself and his company and may tell you his company does not carry a particular fund because they don't think it is a good. Hog wash. Another broker lie. It is your money and you are entitled to buy any fund. Go to a discount broker who handles that fund and open an account. It will save you a bundle over the years and they are as safe an any big-name broker.

Advice from a financial planner is no better if he is making commissions. The smart method is to have a fee based broker who has a winning track record. Have any financial planner show you his model account. He should have one or maybe several model portfolios. Unless they make money every year he is not a successful money advisor. Don't let them hoodwink you about their performance "is better than the S&P500". That's nonsense. You want to see a cash increase every year.

The first and basic rule is never pay commissions for any mutual fund.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

disinfecting cleaning services Winnetka ..

In The News:

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Researchers discover phishing scam using invisible characters to evade email security, with protection tips including password managers and two-factor authentication.

iPhone and Android users can reduce battery drain and data usage by restricting Background App Refresh to Wi-Fi connections instead of mobile networks.

Scammers nearly stole an Apple account by exploiting the support system with authentic-looking tickets and phone calls, users can protect themselves with safety steps.

FoloToy restored sales of its AI teddy bear Kumma after a weeklong suspension following safety group findings of risky and inappropriate responses to children.

Threat intelligence firm Synthient uncovers one of the largest password exposures ever, prompting immediate security recommendations.

Viral video shared by Elon Musk shows Tesla's Optimus humanoid robots performing tasks from cooking to construction, garnering over 58.5 million views on social media.

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.

Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.

Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Mutual Fund Commissions

Stocks & Mutual Fund