The Setup:

No matter how long you’ve been investing, you’ve probably decided to put some portion of your money into mutual funds. They’ve always been a popular investment option, but how well do you understand the product? Let’s take some time to understand the common terminology, what makes up a mutual fund, and other basics.

Click the timestamps below to skip to a specific topic in the episode.

The Combination and Key Points: 

There’s a great chance that if you invested at any point in your life, some of that money has gone into a mutual fund. It’s always been a popular investment option and one that we commonly turn to when looking planning for retirement.

On this episode of Unlocking Your Financial Future, we begin a two-part series on mutual funds to help you understand the basics of the product before discussing the strategies behind using the funds to move you towards your retirement goals.

Mutual funds seem pretty straightforward but how much have your really examined where your money is going? Many times there are hidden fees associated with funds, but even the advertised costs get overlooked or ignored by investors. And how closely do you examine what makes up the fund you’re investing in? You might not be as diversified as you believe. Let’s not even mention that prospectus that comes in the mail after you purchase a fund and most likely ends up in your garbage bin.

As we always discuss, it’s important to be knowledgeable about your investments and that’s what we hope to accomplish today. We’ll take you through the important terminology associated with mutual funds before talking about the other important core aspects of this popular retirement planning option.

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!

0:37 – Today we’re talking mutual funds.

3:02 – Explain what a mutual fund is and what is consists of.

4:12 – How many stocks are in a mutual fund?

5:24 – What percentage of our clients are invested in mutual funds or have been at some point?

5:51 – Is the landscape changing at all?

7:07 – Explain the term expense ratio.

9:25 – What about the term ‘loaded’?

10:31 – Are there any other areas that trip people up when it comes to mutual funds?


Related Content:

The Risks Savers Face: Being Too Aggressive

The Risks Savers Face: The Tax Time Bomb

Will You Need Less Income When You Retire – Busting Financial Myths, Part 2