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Michael Endress

Personal Finance, Retirement, Investing
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“Michael Endress founded Endress Capital Management in 2010 and helps clients with retirement, financial planning, and goal planning. He believes that being a fee-only investment advisor is important.”
Firm:

Endress Capital Management

Job Title:

President

Biography:

Michael R. Endress is the President of Endress Capital Management. He started investing in 2003, gaining valuable experience by starting and managing his own Roth IRA. He graduated from Purdue in 2007. In 2008, he passed his Series 7 and Series 63 licensing examinations and became a stockbroker at Charles Schwab. Working at Schwab during the market crash of 2008-2009 gave Michael a valuable perspective on how to help clients in times of extreme volatility and uncertainty. After gaining further experience at Schwab, Michael resigned to pursue his dream of forming a fee-only Investment Advisory firm in 2010.

Michael enjoys educating clients about how they can best achieve their financial goals. In particular, he finds much happiness in showing others how hidden investment fees can cost them in the long term. He is committed to providing clients with ethical, unbiased investment advice under a transparent fee structure.

In his free time, Michael enjoys a variety of activities including exercise, intramural sports, reading and board games.

Education:

BA, History, Purdue University

Assets Under Management:

$7 million

Fee Structure:

Fee Only

CRD Number:

5624377

Disclaimer:

Readers acknowledge all risks of investing, including but not limited to the following: interest rate risk, market risk, business risk, depreciation risk, sector risk, default risk and bankruptcy risk.  Readers acknowledge such investments are speculative and involve a high degree of volatility and risk.  The client hereby acknowledges comprehension and liability for all investment risks.

 

All Articles
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August 2016
    Choosing an Advisor, Financial Planning, Investing
September 2016
    Choosing an Advisor, Starting Out
April 2017
    Annuities, Choosing an Advisor, Lifestage Based Planning, Retirement Savings
August 2016
    Investing, Financial Planning

All Answers
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    Investing, ETFs, Mutual Funds
What advantages do exchange-traded funds have over mutual funds?
62% of people found this answer helpful

First, let's discuss what the two have in common. Usually, exchange traded funds (ETFs) and mutual funds are diversified. This means the funds hold the stock and / or bonds of many different companies. So, both represent good ways to achieve a diversified portfolio without having to buy hundreds or thousands of stocks and bonds yourself.

That said, ETFs do have some advantages over mutual funds. The advantages are:

  1.  Lower Expense Ratios- Nowadays, investors can purchase ETFs with expense ratios of less than .1%. Meanwhile, the average mutual fund charges an expense ratio of 1.25%
  2. No Sales Charges- Some mutual funds have a sales charge, which is an additional charge that is applied when an investor buys or sells a fund. Many A share American Funds, for instance, currently charge a 5.75% sales charge on purchases. ETFs do not usually have such sales charges.
  3. Lower Transaction Fees- Mutual funds tend to trade more than index funds. Mutual fund companies must pay to trade; therefore, investors will pay transaction costs that are NOT included in the expense ratio. On average, mutual fund trading fees costs a fund investor another 1.44% a year while index fund trading costs are lower. In fact, mutual funds overpay for trades on purpose, in order to receive benefits; this complicated and underhanded practice is known as a "soft dollar arrangement" and you can read about it in this Investopedia article.
  4. Higher Tax Efficiency- ETFs are more tax efficient than mutual funds. This is because mutual funds pay out  larger amounts capital gains to their shareholders every year. For instance, from 2000 to 2010, mutual funds paid out about 7% of their Net Asset Value to shareholders. During the same period, ETFs paid out capital gains of .02% of their Net Asset Value. While this might sound good, the ability of ETFs to retain this money is an advantage over mutual funds. Since ETFs are able to retain their earnings instead of paying them out, this results in less tax liability to owners of the fund. Note: This is only a tax advantage in non-qualified accounts.

For all of these reasons, I typically recommend ETFs over mutual funds. While everything has advantages and disadvantages, when it comes to ETFs, the advantages outweigh the disadvantages.

August 2016
    Social Security
What is the maximum I can receive from my Social Security retirement benefit?
55% of people found this answer helpful
August 2016
    Retirement, Mutual Funds
Is it wise to put my entire retirement portfolio within one company?
50% of people found this answer helpful
August 2016
    Investing, Mutual Funds
What are the advantages and disadvantages of mutual funds?
50% of people found this answer helpful
August 2016
    Retirement, Choosing an Advisor, Retirement Plans
Who can help me grow my retirement nest egg?
50% of people found this answer helpful
August 2016