| The best investment management can be pricey, | | | | mutual fund. The cost of investing directly |
| but you can get the best investment | | | | reduces your investment returns or profits. For |
| management in 2010 and beyond that is | | | | example, let's look at the most popular funds, |
| affordable for less cost than you think. The truth | | | | stock funds. |
| is that in the investment world you don't always | | | | The stock market has historically returned on |
| get what you pay for. Here's how to get the | | | | average about 10% a year over the past 80 |
| best investment management at the best price. | | | | years or so. The average stock fund DOES NOT |
| There are at least 3 myths in the world of | | | | beat the stock market... especially after charges |
| investment management. One, that rich folks get | | | | and expenses are included. If you pay 5% in sales |
| the best management and always make money. | | | | charges off the top when you invest (like many |
| Two, that investors get what they pay for. | | | | people do), that's money right out of your pocket |
| Three, that average people can't afford | | | | that never gets invested. If you sign a "service" |
| professional money management. The truth of | | | | agreement with an investment professional it |
| the matter is that very few investment advisers | | | | could cost you 2% a year, plus fund expenses |
| or managers consistently outperform the market | | | | can tack on another 2% a year if you invest in |
| averages; and fewer yet do so and make profits | | | | the wrong one. |
| for their clients every year. | | | | The good news is that you do not need to sign |
| For example, rich folks (qualified investors) often | | | | and pay for a separate service agreement; or |
| pay 2% a year plus 20% of profits to invest | | | | pay any sales charges at all to invest in mutual |
| money in a HEDGE FUND. Sometimes they get | | | | funds. You only need to pay for yearly fund |
| great investment returns, and often they don't. | | | | expenses. The best investment management in |
| Sometimes the rich get scammed by money | | | | 2010 and beyond: no-load mutual funds. Your total |
| management organizations that somehow fly | | | | cost of investing can be less than ½% a |
| under the radar of government regulation as well. | | | | year. This pays for professional money |
| The best investment management at the best | | | | management and fund expenses; and is |
| price for average investors can be found in | | | | automatically deducted each year from your |
| MUTUAL FUNDS (not to be confused with hedge | | | | investment. |
| funds)... but not all funds or fund companies qualify | | | | I suggest you start the new decade out right and |
| as your best bet. They are all highly regulated by | | | | search "no load funds" on the internet. Likely, the |
| the government and provide money management | | | | following three names will appear near the top of |
| services to the public. They all try to be | | | | your search results: Fidelity, Vanguard, and T |
| competitive and make good returns for their | | | | Rowe Price. All three of these fund companies |
| investors, because it's in their own best interest. | | | | have risen to the top over the years by working |
| Good performance attracts more investor | | | | directly with investors providing good, low-cost |
| money; and the more money a fund company | | | | service. |
| manages the more management fees they | | | | Don't throw your investment dollars away. Extra |
| collect. | | | | charges and expenses simply eat away at your |
| But no fund company outperforms the | | | | potential investment profits. You don't always get |
| competition significantly on a consistent basis year | | | | what you pay for. Sometimes you get more; if |
| after year. It's almost impossible to do. So, what's | | | | you know where to find the best investment |
| the real difference and how do you find your best | | | | management at the best price. Now, in my |
| bet? You look at what it costs you to invest in a | | | | opinion, you do. |