The only thing better than hearing about someone’s great bargain is being able to get that same deal yourself. Here’s part 3 of my "The Best Deal I Ever Got" series:
Invest yourself and pocket the commissions
“When I wanted to start saving for retirement, I considered using a full-service broker since I needed some advice on how to invest my money. One day I was telling my son about this plan, and he suggested I use no-load mutual funds from a discount broker as an alternative. He told me that these funds do not charge fees to invest (a savings of 3-5% versus load funds that do charge), and there are no additional fees that a broker would charge if I’d do it myself. Plus, he offered to help me decide which funds were best for me so I had no need for a broker. Since I’m avoiding those extra investment costs, I’ll retire with a significantly larger nest egg.”
Total Savings: $200 per year
Max J., Iowa
Go to The Best Deal I Ever Got Part 4.
Update: Time to post to the Beltway Traffic Jam!
I do most of my investments on common stocks.
As such, I preffer to buy them using a discount broker.
However, for people who can only invest $100 a month, a no load, low management fee, mutual fund like the Vanguard 500 may be a better option. No fees (comissions) for buying or selling.
Posted by: Jose Anes | June 02, 2005 at 01:09 PM