This is guest host Andrew Horowich from the Disciplined Investor Podcast.

And today on Money Girl, a few quick and dirty tips on how to reduce the load you pay on mutual funds using break points.

Let me ask you something, are you tired of paying high sales charges every time you invest in mutual funds?

Better yet, have you ever wondered why some people seem to be paying lower fees than you? If so, then you may be interested in a little

thing called BreakPoints. And if you have a good deal of money to invest, you

should listen closely because this episode may just save you thousands of dollars.

Breakpoints are discounts on sales charges that you get when investing large sums into what's called

a load mutual fund.

A load is the sales charge that some funds charge you for investing in their

fund. Now it's important to note that there are several ways to invest in mutual funds and

just as many fee structures. They range from front- end load where you pay the fee up front

to back end load where depending on how long you hold a fund you will pay a

fee when you take your money out and even true no loads where you pay no sales charges at all.

While I recommend only no load funds for my clients, if you work with a full service stock

broker you will probably be paying some form of commission when you invest.

So if that is you, listen up.

A group of funds distributed by one company is referred to as a fund family.

Breakpoints exist to encourage investors to combine all of their assets into a single fund family in exchange for a reduction of fees.

And if enough money is invested and by enough it usually means over a million dollars.

The sales charges are usually waived entirely.

One note, sales charge breakpoints only apply to funds with a front end load, sometimes

called A-shares.

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