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Are the zero-charge ETFs for you? When marketing firms state it is free, BEWARE. New firms are promising 0% expense percentages. Read the small print. ETFs were created by brokerage firms to generate income on the ‘index’ development began by Vanguard. Vanguard is sold directly and traders aren’t welcome. So brokers/advisors can only make money when you trade an ‘index’ they provide.

Because of all the money moving to Vanguard for low fees, agents are hurting. Brokers need fees so remember that there are brokerage delayed or concealed costs. Although an ETF may have no expense ratio, the trading cost of that particular fund may be exorbitantly high. Beware the bid/ask spread for newer funds. Beware the tracking error.

Zero-fee funds lack a performance and fee history, which make it impossible to determine their tracking error. Beware the promo price. Fees are temporarily waived: investors begin paying full freight after the fee waivers expire. After they have your money, they may impose 0.30% or even more and you have lost your advantage over Vanguard’s 0.04% steady non-profit framework.

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Brokers are in it for the money. Pay less; earn much more, as time passes. Trump’s mob has been spending so much time to make this tax avoidance plan, called “opportunity zone,” successful in time for his 2020 rerun for Prez. High academic institutions could teach that one chart and right financial IL-literacy. My former industry, financial services, could release our academic institutions to provide a basic course in investing however they don’t.

For most young Americans just beginning to save in their first careers, this ‘education’ could be their true to life saver. The graph illustrates the Miracle of Compounding. Using a simple analogy of shopping for an integral part of all the ongoing companies they know, they would start to see the real returns of asset accumulation.

5,000 saved for retirement, this chart could change our attitude. Per month will make the difference in the future of the American Desire for most 200. A simple low-cost stock index fund would be the building blocks of their investing strategy. Warren Buffett has demonstrated that most of us would be better off if we had discovered this simple truth early in life.

80 billions in annual trading profits. Is ‘immediate indexing’ right for you? Change the name and agents and consultant can sell it. This is the conclusion some investors are coming to. The financial industry has sick and tired of promoting ETFs so they came up with a fresh name for selling stocks and shares. ‘Direct Indexing’ is just buying a lot of stocks.

The new name is to capture new customers who never recognized that you don’t pay capital increases if you don’t sell your securities. In the event that you just buy and HOLD securities (Warren Buffett’s strategy) you can avoid the administrative center gains of mutual money. Further, if one of your broker/advisor’s picks will go bust, you can sell for a reduction against a gain. ‘Tax-loss harvesting’ is another benefit they state.

DI can form the outcomes that each client’s goals require, they state. So what’s old, is new again. Follow the get good at trader. Are these ‘most severe’ vehicles right for you? Can you live on 80% of your SS benefits? In 2035, SS trustees say we will start receiving about 80% of our current benefits. Congress is improbable to repair this shortfall since it could require radical change-taxes and or age group change. 133,000, the FICA taxes ends.

I do think that most hedge money probably don’t are worthy of to exist, and machines shall increasingly more take over money management, but I think it will still be very cyclical. We have seen this before in the past; move to quantitative money management, indexing vs. And this sort of thing clarifies why Buffett has been buying WFC for all these years, right before the crisis even.