The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Stock Fees? Date:  11/19/1998  5:02 PM
Author:  SnootFool Number:  6680 of 100423

<<Do you think then that it would be better to put the money into a no load mutual fund with no transaction fee? Or would you pay the discount broker's fee and get the stock?>>

Around these parts (the Fool, that is), actively managed mutual funds are not held in very high esteem, due to their high annual expenses (~1.5% or higher), poor performance compared to the S&P500 index & high turnover (leads to high taxes= high expenses, altho this last is no factor for an IRA). So, generally speaking, individual stocks are preferred. Of course, if you pick a rotten stock, you'll lose to the mutual fund. You also need diversification, which 1 stock won't provide. Go read the 13 steps & learn more, you'll be glad you did.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us