Hey everyone, welcome to another blog from
My Journey To The millions! We will be talking about mutual funds and if they really are a good investment. If you have some of these, you need to read this. They are good for some people but not everyone!
Mutual funds, are they mutual? Really? Lets evaluate this. The mutual fund company takes your money and uses it to invest. They use 100% other peoples money. They use 0 of their own money, take 0 percent of the risk. Alright, it seems unfair so far but they get 50% of the profits and you get the other 50%, so its fair right? No, its still not fair. Why you may ask? BECAUSE THEY GET MORE THAN 50%. They keep 80% and you get 20%. You pay 80 percent in commissions and fees, how in the world is a mutual fund mutual in any way?! Now the best part of this is the tax benefits. Who gets the tax benefits, them being taxed as a corporation, with plenty of tax benefits, or you, paying tax on it as EARNED INCOME, THE HIGHEST TAX OF THEM ALL! Okay, we have pointed out the bad in mutual funds, but at least you can get contribution from your company and they match it, depending where your from of course, and the company. That makes up for it right? No. They would pay that in your wage any ways, you just lose out on this benefit if your not able to contribute money directly from your pay check! Mutual funds are un-mutual and a scam in my opinion! Now that being said, some people need to invest in these because its their only chance for retirement since they choose not to get financially educated. The best retirement plan is to build cash flowing assets rather than capital gain assets. perhaps retirement plans will change in the future. Hope you all are a bit more educated now on Mutual funds if thats what you choose to call them any more that is. Have a good day everyone and thanks for reading.
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