DIY Personal & Retirement Financial Planning

Do-It-Yourself financial and investment planning Excel spreadsheet software

brokerage commissions

Diversify with Low Cost Index Mutual Funds and ETFs Only

During the last twenty-five years of the 20th century, mutual fund and exchange traded fund portfolio assembly costs declined dramatically. Brokerage commissions were deregulated in 1975, and transaction costs have fallen very dramatically since then. Furthermore, well-diversified, low-cost index mutual funds have now become commonplace, while none existed in 1968. The mutual fund industry was […]

Avoid High Turnover Mutual Funds and Active ETF Trading

Avoid investment funds with higher investment portfolio turnover The problem with high turnover is that higher fund trading adds substantial hidden expenses that drag down returns. Because short-term trading is a zero sum game (before costs) played against other well informed traders, greater turnover is far more likely on average to result in lower fund […]

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