clark howard?

Question

I'm currently paying 60 basis points on my mutual fund investments. Would it be financially wiser for me to invest in a low-fee index fund?

Answer 1

Are you asking if Clark Howard will answer you? Ask him.

I don't know about paying "basis points" on a mutual fund, I never bother with any fund that I have to pay anything extra for. As for "low-fee" indexes, consider ETFs (exchange traded funds). The only fee is the brokerage for buying them, they trade like shares of common stock, and the costs are usually far, far lower than the fees on almost all mutual funds. You can get into all of the Dow Jones Industrials by buying DIA or all of the S&P500 by buying SPY or the top 100 (by market capitalization: number of shares outstanding times the latest price of the stock) companies on the New York Stock Exchange by buying NY. I put a link for Ishares, Powershares and others like the American Stock Exchange which does the Diamonds trust (DIA) do the same.