Mutual Fund Expense Lies

Written by Al Thomas


MUTUAL FUND EXPENSE LIES When purchasing mutual funds we are cautioned to readrepparttar prospectus, look at past performance, check outrepparttar 137524 fund manager’s record and see what their expense ratios have been. We are also told that we should not buy funds with expenses exceeding 1% to 1.5%. When you askrepparttar 137525 fund salesman (don’t forget he’s a salesman) he will assure you thatrepparttar 137526 fund expenses are whatever is shown inrepparttar 137527 prospectus. He is telling yourepparttar 137528 truth, but notrepparttar 137529 whole truth, accordingrepparttar 137530 Securities and Exchange regulations. In many cases he has left out a big chuck of expenses. The 1.5% expense means you are paying $150 each year of every $10,000 you have invested with that fund. The lowerrepparttar 137531 expense isrepparttar 137532 more of your money is at work. As a fund becomes larger meaning they take in more moneyrepparttar 137533 expense ratio should drop, but it rarely does.he fund manager must make 1.5% to have your money stay even. If you can find your way aroundrepparttar 137534 Securities and Exchange Commission internet web site you will find thatrepparttar 137535 definition of expense ratio leaves out commission charges. Many funds will turn over their portfolio by 100% in a year. Obviously they are not going to buy and sell at no charge. The floor broker must be paid a commission for each share that is executed. Sometimes brokerage fees are purposely inflated andrepparttar 137536 broker kicks back favors(they don’t call it that) such as research information, free

Be Wary of Guaranteeing a Loan

Written by John Mussi


You need to be wary of guaranteeing a loan. What would you do if a friend or relative asked you to guarantee a loan? You would probably like to help them by agreeing to guaranteerepparttar loan but consider your actions carefully first and make sure you understand what it involves.

You are being asked to guarantee a loan. Think carefully before you do. Ifrepparttar 137503 borrower does not payrepparttar 137504 debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility.

You may have to pay up torepparttar 137505 full amount ofrepparttar 137506 debt ifrepparttar 137507 borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount.

The creditor can userepparttar 137508 same collection methods against you that can be used againstrepparttar 137509 borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record.

Studies of certain types of lenders show that for guaranteed loans that go into default, as many as three out of four guarantors are asked to repayrepparttar 137510 loan.

If you guarantee a loan and your friend or relative misses a payment,repparttar 137511 lender can immediately collect from you without first pursuingrepparttar 137512 borrower. In addition,repparttar 137513 amount you owe may be increased - late charges - ifrepparttar 137514 lender decides to sue to collect. Ifrepparttar 137515 lender winsrepparttar 137516 case, your wages and property may be taken.

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