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Ask Dave

Invest On My Own or Use An Advisor?

Lynn doesn't want to use an investment advisor to help her purchase bonds, but Dave says that she should seek out someone with the heart of a teacher.

QUESTION: Lynn wants to invest directly instead of going through an investment advisor.  What are some good mutual funds for her to invest in?

ANSWER: You don’t necessarily save anything by investing in no-load mutual funds.  There are two kinds of charges associated with mutual funds.

1.    Commissions – typically 4% - 5%
2.    Annual expense fees

If you look at the expense ratio over at least a five-year period of time, many times a loaded mutual fund has much lower annual fees.  The annual expense fees plus the commission usually ends up being cheaper because no-load funds have fewer fees attached to them. 

You don’t have to invest completely in loaded mutual funds, but don’t invest completely in no-load mutual funds either.

Get with a good investment broker who can point you in the right direction.  You need someone who is making a commission and has the heart of a teacher. 

Talk to the Endorsed Local Advisor in your area, but make sure you leave the room understanding everything and that you also listen with your heart.  Sometimes you’ll sense that something isn’t right or that you need to learn more, so pay attention to what your heart tells you.