Quote:
Originally Posted by Slava
This is not necessarily true. Buying funds and having someone get paid to provide advice for you to do so is not all bad (contrary to what some might think!). If you want professional help, then you will have to accept the fact that someone is earning a living providing that advice for you...its not the worst thing in the world, either!
Look at it this way: I could cut my own hair. I know how to use a pair of scissors and I know the hairstyle that I want....I could even save myself some $$ by doing so. Would I do this? Absolutely not! I get far better results by getting it done right!
Lastly, there are deferred service charges which make more sense in many cases. This is a service charge that gradually reduces to zero, generally over 7 years. If you are not planning on withdrawing in those seven years, then you're really not paying any service charge, but still getting professional advice, professional monitoring and professional service along the way. Globefund is cheaper, but its not providing you all of that!
|
Abviously our opinions differ greatly. If I'm locked into an energy fund that has a back end charge and the govenment decides to raise royalty rates to the point that the industry declines I have no alternative other than to stick with the fund and except the losses or to cash out and pay the withdrawl fees.
This is just one example.
My point is that there is alternatives to the readily accesible Financial Advisor offered Mutual Funds.
A little leg work goes along way in Mutual Fund investing. I know, I've paid my dues.
With that said someone who is new to investing may benefit from proffesional advice and as someone else pointed out earlier be very wary of financial advise garnered off the internet. Myself included.