Save a Buck: Avoid High Mutual Fund Fees - AARP Bulletin

One Way to Avoid High Mutual Fund Fees

If the roller-coaster stock market isn’t enough to turn your stomach, here’s another reason for Pepto-Bismol: the high fees charged by many . Sure, what ultimately matters is the total return on your investment, not the fees. But lower fees are one reason for the growing popularity of exchange-traded funds, investment instruments you can buy and sell on financial markets like ordinary stocks. ETFs often track an index such as the S&P 500. Many brokerages will charge you a commission to buy ETFs, but once you own them you’ll typically pay fees of just 0.5 percent a year, or $50 on a $10,000 investment, compared with the 5 percent or more that many mutual funds charge. To get the specific numbers for what different funds charge, including ETFs, visit . For another side-by-side comparison, go to the website of the. For $10 a month, MarketRider provides a detailed portfolio manager tool for ETFs and other based on your age, retirement time frame and other factors. It also gives alerts on when to rebalance. Of course, ETFs are not the only place where you could put your money. So check with your financial adviser or do some serious research at online sites to decide what’s right for you. You can get information at , sharebuilder.com and . Sid Kirchheimer writes about health and consumer issues. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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