The Hidden Costs of Mutual Funds There’s more to the cost of a fund than its “expense ratio”. Much more. The expense ratio, which most people are familiar with, is a number expressed as a percentage, easily found on any financial website or prospectus. This number represents the explicit cost of a fund, which is 0.63% for the average stock mutual fund. What’s missing in this calculation are the hidden costs, all of which typically add up to more than the expense ratio, and none of which are listed anywhere. Here’s a quick explanation of each… Bid/ask spreads: Look up …
A Bear Market Is Coming! Here’s the Game Plan
Let’s define it. A bear market is a drop in the market of at least twenty percent from its highs, lasting at least two months. Think 2008. In fact, there have been 32 bear markets since 1900, or one every 3.5 years, on average1. So, when’s the next one? Definitely, without a doubt, sometime in the future. We guarantee it. Of course, we are being facetious. If you are reading this, you are either a client, or an acquaintance who has read a few of our posts. Either way, you know that bear markets, bull markets, and everything in …