A vast number of people think that investing for the long term in a diversified portfolio of mutual funds is the smart thing to do. In my opinion, this ranks among the worst possible investments.
The problem with funds is fees. The longer you invest in a mutual fund, the more you pay in fees. I've pointed out before that when I buy a piece of real estate or a stock, I pay the sales commission once, but when I purchase a mutual fund, I pay a sales commission for as long as I own the fund (see "So Long Pensions, Hello Fees" )..... (more)
Monday, February 12, 2007
Why not to buy Mutual Funds (Part 2) - By Robert Kiyosaki
I was on a radio program not long ago. My host was a financial planner who was upset about the book Donald Trump and I wrote, "Why We Want You to Be Rich." In the book, Donald and I don't speak highly of mutual funds. Rather than listening to what I had to say, the interviewer wanted to argue. His position was that Donald and I weren't experts on mutual funds, and had no right to criticize. I agreed that we weren't experts on mutual funds, and reminded the host that Donald I never claimed to be..... (more)
After reading this article, I truely believed Kiyosaki's advise is very true in some way but I think part time investors should weight between the time needed to take care of their investment and fees they are willing to pay an knowledgable management to manage the investment for them.
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