American Funds are a scam! They don't perform any better than index funds that cost 0.05%. Only a novice would invest in a mutual fund with a 5.75% load and a 0.60% annual expense ratio.
You are SMART! I would have just gone along with what the sales man recommenced. In fact, I did invest $2,000 in a limited partnership IRA, which was very illiquid. After 25 years I got back $2,500! Fortunately, my work 401 had better options with much lower costs and over time I learned about investing in low-cost index funds.
A "financial advisor" put my sister into American Funds funds with a 5.75% load and a 0.60% annual expense! Fortunately, it was just her non-retirement savings. When she retired I convinced her to roll over her 401 to Vanguard index funds. This advisor also sold her a $200K long-term care policy that she probably doesn't need. She has a million dollar portfolio at Vanguard plus $400K equity in her house. This "advisor" is acting in his own interest, not hers.
Comments
American Funds are a scam! They don't perform any better than index funds that cost 0.05%. Only a novice would invest in a mutual fund with a 5.75% load and a 0.60% annual expense ratio.
Post: Why We Get Fooled
Link to comment from February 9, 2023
You are SMART! I would have just gone along with what the sales man recommenced. In fact, I did invest $2,000 in a limited partnership IRA, which was very illiquid. After 25 years I got back $2,500! Fortunately, my work 401 had better options with much lower costs and over time I learned about investing in low-cost index funds.
Post: Why We Get Fooled
Link to comment from February 9, 2023
A "financial advisor" put my sister into American Funds funds with a 5.75% load and a 0.60% annual expense! Fortunately, it was just her non-retirement savings. When she retired I convinced her to roll over her 401 to Vanguard index funds. This advisor also sold her a $200K long-term care policy that she probably doesn't need. She has a million dollar portfolio at Vanguard plus $400K equity in her house. This "advisor" is acting in his own interest, not hers.
Post: Why We Get Fooled
Link to comment from February 9, 2023