Friday, March 26, 2010

Really Need a Money Manager?

Another investment basic: Avoid money managers if you can. Why pay a fee of 1% to 2% of your assets? This will amount to about 20% or more of your earnings a year. If you invest in a hedge fund, you pay 20% or more of earnings off the top, plus that percentage management fee.

Only a minute number of money managers prove to be frauds, but you will sleep better by staying away from them all.

Hire an accountant, a CPA, and if you have considerable funds, you must have a tax attorney. Otherwise, avoid expensive money managers by sticking to plain, low-management-cost funds. ( See my Earl J Weinreb NewsHole® comments.)

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