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Talking Real Money - Investing Talk

Higher Fees, Higher Returns?

Talking Real Money - Investing Talk

Don McDonald

Investing, Education, Business, How To

4.5810 Ratings

🗓️ 26 October 2022

⏱️ 19 minutes

🧾️ Download transcript

Summary

A number of fiduciary advisors are being sued for not putting their clients in more expensive mutual funds. Somehow, they equate higher expenses with long-term higher returns. A listener wonders whether individual bonds are better than a mutual fund? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:11.0

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0:27.0

18 plus subscription required season C's apply.

0:34.9

Reality radio for a really great future. We're talking real money. Rarely live from Florida and the great state of Washington. I am Don McDonald, and that is Tom Cock, and this is the podcast known as Talking Real Money. Why? Obviously, we talk about money, and we try to make it real.

1:03.0

Unlike so many others who tell you things that just aren't necessarily good for you. In fact,

1:09.1

they're often really, really bad for you.

1:11.7

And we want to help you understand the world of money.

1:15.6

And in a recent episode, we talked a little bit about the fee structures of mutual funds

1:20.9

and where the money for the fees went.

1:23.3

You know, some of it goes to management.

1:24.8

Some of it goes to the people who sell the product.

1:27.0

Some of it goes to administration. You know it goes to the people who sell the product. Some of it goes to administration.

1:29.2

You know, their commissions involved in trailing commissions and all this confusing rigmarole.

1:34.1

But the bottom line, really with fees, and this has been the case over and over and over again.

1:39.1

Study after study has shown that generally speaking, the best indicator of a good mutual fund is the fee.

1:48.3

The lower the fee, the better. However, there has been an attitude in the financial services

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