Stock Market
Load usually means there is a fee to get in or out of the fund. There is usually a yearly management fee assessed regardless of the "load". You can use your imagination as to what I think of them and their "Load".
I think most of those load funds are long dead. I remember when that term was tossed around back in the 80-90's era. I doubt many charge that fee any longer with the number of funds out there that don't do it.
My 2 cents, no to mutual funds. You Dave fans,please don't follow his M Fund advice here. He's sharp on lots of things, wrong here. No need when there are Index ETF's that the funds are compared to for performance. Buy the index fund (can also sell calls on many - a weekly/monthly dividend), not some fund that mirrors it and charges you a fee. Ex. go buy a car and bring it to my house so I can drive the wheels off it and give it back at 10K miles. Would you do that? Nope. Same as mutual funds/advisors, except they are skimming money off your account yearly (devaluing the car). Here is an example with really small numbers and the huge difference over the long term, that even a 1% management fee impairs your returns. $250 every month for 35 years at 10%
$250 every month for 35 years at 10% gets you 820K. If you pay that "advisor" 1% over the same time frame and they match the market (most do not), they take almost 170K from you over those 35 years, balance 652K. Avg monthly reduction over time, 400/month. You have an hour... see the following for an example of the no interest deal.
I have a friend with roughly a 5 million dollar account at a place that beat the market once in 20 years. His excuse, I don't have time for that stuff. I asked, "What is the highest $/hr you made when working? Was it more than 4,000/hr?' Answer - Nope. He could manage his stuff in one hour a month, just like his "advisor", saving 4K per month in management fees. Unreal... With thing like auto dividend reinvestment and such, it's simple. But he's a nice guy... that response always kills me. I'm cool with you to, do more with you than the advisor and you don't flow me anything... LOL
Load usually means there is a fee to get in or out of the fund. There is usually a yearly management fee assessed regardless of the "load". You can use your imagination as to what I think of them and their "Load".
I think most of those load funds are long dead. I remember when that term was tossed around back in the 80-90's era. I doubt many charge that fee any longer with the number of funds out there that don't do it.
My 2 cents, no to mutual funds. You Dave fans,please don't follow his M Fund advice here. He's sharp on lots of things, wrong here. No need when there are Index ETF's that the funds are compared to for performance. Buy the index fund (can also sell calls on many - a weekly/monthly dividend), not some fund that mirrors it and charges you a fee. Ex. go buy a car and bring it to my house so I can drive the wheels off it and give it back at 10K miles. Would you do that? Nope. Same as mutual funds/advisors, except they are skimming money off your account yearly (devaluing the car). Here is an example with really small numbers and the huge difference over the long term, that even a 1% management fee impairs your returns. $250 every month for 35 years at 10%
$250 every month for 35 years at 10% gets you 820K. If you pay that "advisor" 1% over the same time frame and they match the market (most do not), they take almost 170K from you over those 35 years, balance 652K. Avg monthly reduction over time, 400/month. You have an hour... see the following for an example of the no interest deal.
I have a friend with roughly a 5 million dollar account at a place that beat the market once in 20 years. His excuse, I don't have time for that stuff. I asked, "What is the highest $/hr you made when working? Was it more than 4,000/hr?' Answer - Nope. He could manage his stuff in one hour a month, just like his "advisor", saving 4K per month in management fees. Unreal... With thing like auto dividend reinvestment and such, it's simple. But he's a nice guy... that response always kills me. I'm cool with you to, do more with you than the advisor and you don't flow me anything... LOL