Comments on: How to Avoid a Mutual Fund’s Minimum Investment http://www.doughroller.net/investing/avoid-mutual-fund-minimum-investment/ Money Management and Personal Finance | The Dough Roller Sun, 12 Feb 2012 23:24:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: DR http://www.doughroller.net/investing/avoid-mutual-fund-minimum-investment/comment-page-1/#comment-16272 DR Thu, 17 Dec 2009 11:39:39 +0000 http://www.doughroller.net/?p=4431#comment-16272 Moss, the point is that mutual funds and exchange traded funds ARE different. Agreed that you pay a cost to buy and sell ETFs that you won't pay with no load funds. But if you are a long term investor, the ETFs can be better in the long run because of the reduced expense ratio as compared to comparable mutual funds. Moss, the point is that mutual funds and exchange traded funds ARE different. Agreed that you pay a cost to buy and sell ETFs that you won’t pay with no load funds. But if you are a long term investor, the ETFs can be better in the long run because of the reduced expense ratio as compared to comparable mutual funds.

]]> By: Moss http://www.doughroller.net/investing/avoid-mutual-fund-minimum-investment/comment-page-1/#comment-16267 Moss Thu, 17 Dec 2009 04:12:54 +0000 http://www.doughroller.net/?p=4431#comment-16267 I'm sure it goes without saying, but... you do know that you are suggesting exchange traded funds are the same as a mutual fund. They are not. It also seems that -- even with a low commission from a discount broker online -- the total expense to use this method of accumulation rules out a prudent choice. Don't get me wrong - I understand the need for higher minimums. But grabbing $100 worth of an index tracking ETF 30 times will cost > 150 bones. $150 / $3000 (the Vanguard minimum) totals a cost to buy expressed as... ... 5 percent! People need to realize that there are two costs involved: 1) Cost to buy 2) Cost to own I think Mr. Krantz overlooks (or at least doesn't account for) this. Now, I espouse the use of ETF's, mutual funds and individual securities, and the economies of scale apply, yet we cannot be penny wise and pound foolish. Accumulate the minimum in an interest bearing savings account and pass on the coffee. In the end, the interest earned will (may?) treat a couple to a fine evening out. At least the commission savings will, and THAT is not a bad investment. Moss NASD Series 7 and 24 SEC Series 65 I’m sure it goes without saying, but… you do know that you are suggesting exchange traded funds are the same as a mutual fund. They are not. It also seems that — even with a low commission from a discount broker online — the total expense to use this method of accumulation rules out a prudent choice.

Don’t get me wrong – I understand the need for higher minimums. But grabbing $100 worth of an index tracking ETF 30 times will cost > 150 bones. $150 / $3000 (the Vanguard minimum) totals a cost to buy expressed as… … 5 percent!

People need to realize that there are two costs involved:

1) Cost to buy
2) Cost to own

I think Mr. Krantz overlooks (or at least doesn’t account for) this.

Now, I espouse the use of ETF’s, mutual funds and individual securities, and the economies of scale apply, yet we cannot be penny wise and pound foolish.

Accumulate the minimum in an interest bearing savings account and pass on the coffee. In the end, the interest earned will (may?) treat a couple to a fine evening out. At least the commission savings will, and THAT is not a bad investment.

Moss
NASD Series 7 and 24
SEC Series 65

]]> By: Mack jackson http://www.doughroller.net/investing/avoid-mutual-fund-minimum-investment/comment-page-1/#comment-13507 Mack jackson Fri, 10 Jul 2009 07:23:54 +0000 http://www.doughroller.net/?p=4431#comment-13507 Thanks for sharing such great post, it will help many investors to get info about mutual fund investment. Thanks for sharing such great post, it will help many investors to get info about mutual fund investment.

]]> By: Manshu http://www.doughroller.net/investing/avoid-mutual-fund-minimum-investment/comment-page-1/#comment-12796 Manshu Wed, 03 Jun 2009 11:29:10 +0000 http://www.doughroller.net/?p=4431#comment-12796 Thanks for linking back to the OneMint carnival :) Thanks for linking back to the OneMint carnival :)

]]> By: Half Assed Housewife http://www.doughroller.net/investing/avoid-mutual-fund-minimum-investment/comment-page-1/#comment-12596 Half Assed Housewife Sun, 31 May 2009 01:19:48 +0000 http://www.doughroller.net/?p=4431#comment-12596 Thank you so much for showing people a way around the required minimums. It is so disheartening when you want to invest, but don't feel as though you are rich enough to do so. Even billionaires have to start somewhere. Thank you so much for showing people a way around the required minimums. It is so disheartening when you want to invest, but don’t feel as though you are rich enough to do so. Even billionaires have to start somewhere.

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