Will investing in index funds protect me against paying too many fees?

I am going to retire soon and am pretty close to being debt-free. Should I put the vast majority of our money (one million dollars) in index funds to save thousands of dollars in fees? Or should I try to find something else?

Personal Finance, Investing, Peri-Retirement
Answers
Sort By:
Most Helpful
July 2017
100% of people found this answer helpful

Generally speaking, less management in a fund means less fees, and fees compound over time! Do you want to know PRECISELEY what you can expect to pay over the life of your investments in fees alone? Don't take my word for it, visit the unbiased, Financial Regulatory Agency (FINA) website called Fund Analyzer, this agency that regulates financial advisors. They have an incredibly powerful tool that will estimate these funds. All you need to do is input the ticker symbols for your investments and voila! You may be SURPRISED to learn how much you can expect to pay in fees alone over time. http://apps.finra.org/fundanalyzer/1/fa.aspx

My firm can do this for you free of charge and send you a no obligation PDF report on the results. Visit www.denverwealthplanners.com for this. 

Read on to learn more about INDEX FUNDS.

No matter whether you're a seasoned investor or a novice at the stock-trading game, there's a popular option that may suit your portfolio-offering the stability of proven performers you know, plus the growth potential of innovative companies you may not have heard of yet. It also has additional benefits like low costs and tax efficiency.

QQQ-the trade name for the NASDAQ-100 Index Tracking Stock (NASDAQ: QQQQ)-is a type of investment product known as an exchange traded fund (ETF). With a trading volume averaging 99.7 million shares per day, it is the most actively traded, listed equity security in the U.S.* 

Active investors appreciate the simplicity and liquidity of trading a basket of stocks in a single transaction. Long-term investors appreciate that the fund is based on NASDAQ's 100 largest non-financial companies and diversified across sectors. The investment covers a range of industries, including computer hardware and software, telecommunications retail/wholesale trade, biotechnology and transportation, with a simple purchase of a single stock.

Additionally, QQQ is eligible for 401(k) and IRA investments, making it attractive for a long-term buy-and-hold investment strategy. And because QQQ represents the collective performance of these companies, the impact of price fluctuations caused by a specific company is another reason QQQ is also attractive.

Direct Purchases

For the first time, investors who purchase the same dollar amount of shares at regular intervals can have direct access to an ETF such as QQQ. QQQDirect is an affordable online investing service that provides one plan purchase of QQQ per month free of any charge. It is a fractional share, dollar-based service that allows as little as $10.00 per month to be invested with QQQDirect's AutoVest Schedule.

"NASDAQ has played a significant role in the equification of America and QQQDirect is yet another way we can break down barriers to stock ownership," said NASDAQ Global Funds CEO John Jacobs. "By buying a single share of QQQ, dollar-cost average investors will own a portfolio of NASDAQ's industry-leading companies-including the likes of Microsoft, Starbucks and Dell."

"We believe this new service expands the ability of investors to make sound investment decisions," said John Markese, president of the American Association of Individual Investors (AAII). "As an advocate of investor education and empowerment, AAII views the introduction of QQQDirect as a new, cost-efficient opportunity for individuals to practice the principles of sound investing."


 

 

July 2017
May 2017
July 2017
May 2017