Finance: Mutual Fund Expense Lies

Mutual Fund Expense Lies

Written by Al Thomas

Continued from page 1
computers and other favors. Been to repparttar

Hampton’s or Hawaii for that all-expense weekend seminar? Course not. The SEC does not require that this commission cost be disclosed as an expense. Why? Their answer is pure government hokum, “We exclude brokerage costs because we have always excluded brokerage costs”. This is repparttar 137524

SEC that is supposed to be repparttar 137525

watchdog for repparttar 137526

investor. Leaving out this important fact will hide another .25 to .50 cents or more in some cases in expenses that you are paying for. When you call repparttar 137527

fund to ask if their brokerage commissions are included repparttar 137528

person to whom you are speaking probably won’t understand and will give you repparttar 137529

standard answer that repparttar 137530

number shown in repparttar 137531

Prospectus is correct. Getting a true answer is like pulling an impacted wisdom tooth. If you can get one. Brokerage commissions are known to repparttar 137532

penny and could easily be included in repparttar 137533

prospectus, but these “soft dollars” as they are known are not made public to repparttar 137534

investors seem to disappear. Fund managers say these costs are insignificant and that investors should look at repparttar 137535

fund’s performance. If they did that and really understood what they were looking at they probably wouldn’t buy 90% of repparttar 137536

domestic stock funds. This is just another example of how repparttar 137537

investor has repparttar 137538

wool pulled over his eyes and another reason I find prospectuses worthless.

Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter for 3 months at www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005

Be Wary of Guaranteeing a Loan

Written by John Mussi

Continued from page 1

Despite repparttar risks, there may be times when you want to guarantee a loan. Your child may need a first loan, or a close friend may need help. Before you guarantee a loan, consider this information:

Be sure you can afford to pay repparttar 137503 loan. If you're asked to pay and can't, you could be sued or your credit rating could be damaged.

Even if you're not asked to repay repparttar 137504 debt, your liability for repparttar 137505 loan may keep you from getting other credit because creditors will consider repparttar 137506 guaranteed loan as one of your obligations.

Before you pledge property to secure repparttar 137507 loan, such as your car or furniture, make sure you understand repparttar 137508 consequences. If repparttar 137509 borrower defaults, you could lose these items.

Ask repparttar 137510 lender to agree, in writing, to notify you if repparttar 137511 borrower misses a payment. That will give you time to deal with repparttar 137512 problem or make back payments without having to repay repparttar 137513 entire amount immediately.

Make sure you get copies of all important papers, such as repparttar 137514 loan contract. The lender is not required to give you these papers; you may have to get copies from repparttar 137515 borrower.

You may freely reprint this article provided repparttar 137516 author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.

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