Mutual Funds

Worried About Not Having Enough Money?

By Kanwal Sarai
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Portrait Of A Worried Couple Calculating Financial BudgetAre you concerned about not having enough money for your kids, for yourself, for your retirement? The key is to make the right financial decisions today so that your future self will be taken care of.

The right financial decisions are:

  • Spend less than you earn, and invest the difference
  • Pay off your debts quickly
  • Eliminate or reduce the hidden fees you pay in mutual funds

All mutual funds carry fees, these fees are called the Management Expense Ratio (MER). The MER is there to pay the mutual fund manager’s salary, their staff, rent for the office space, the computers, and other administrative matters.

Even a 2.2% MER fee can eat up a large portion of your savings. $1000 invested in the stock market 50 years ago would be worth $514,000 today. However with fees of 2.2% the investor would only be left with $193,000 today. $321,000 would have been lost to fees. More than 62% of your investment would be lost to fees; no wonder most people are worried about not having enough money!

Can you afford to lose $321,000? If not, you owe it to yourself to learn how to invest by yourself for yourself. Investing is simple, focus on buying quality stocks when they are undervalued. Worried about investing in stocks? Don’t be, you’re already investing in the stock market each time you buy equity mutual funds. So you might as well learn how to invest properly for yourself and save the 2.2% fee.

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Kanwal Sarai

With more than 27 years of investing experience and a passion for investing and teaching, I demystify the world of investing. My goal is to help you grow your net worth by investing in quality dividend paying stocks. Build your own stream of increasing income today.

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Showing 2 comments
  • Jackie Bolen
    Reply

    “Spend less than you earn, and invest the difference
    Pay off your debts quickly
    Eliminate or reduce the hidden fees you pay in mutual funds”

    I love what you’re saying here, it’s basically what I preach on my website and when talking to people too. It’s so simple, but for some reason that’s somewhat mystifying to me, people just don’t do it. Maybe short-term wants vs long-term thinking?

    Why do you think people don’t do it?

  • kanwal
    Reply

    Unfortunately we live in a world of instant gratification. The majority of folks are thinking short-term versus long-term. In order to enjoy financial freedom you have to make the right investment decisions today and not wait 10-15 years.

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