Author Topic: Where should I get started to learn about low-fee mutual funds?  (Read 1540 times)

fidgiegirl

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Where should I get started to learn about low-fee mutual funds?
« on: November 15, 2015, 04:13:31 PM »
I am interested in putting our EF $$ in a Vanguard or Betterment or some such similar vehicle, but would like to have a better understanding of why I am doing this beyond just "because MMM says so."

Where are good sites or even threads on here to get started with learning?

So thank you in advance, lovely mustachians.  :)  Even one or two recommendations will get me started down the right rabbit hole, and you know you are all much smarter than Google.  (P.S.  MMM forum search function is terrible, or I'd simply dig.  It's truly awful.  I did my best to search before asking here.  Cross my heart.)

Financial.Velociraptor

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Re: Where should I get started to learn about low-fee mutual funds?
« Reply #1 on: November 15, 2015, 05:57:52 PM »
I'm not an indexer but I think Vanguard will serve you better than Betterment.

Vanguard will have a list of funds that makes the expense ratio easy to find and compare.  Lower is better but you might want a few that are not the lowest possible ER to get diversification into narrow sectors.

You might want to start with (before expense ratio research):
1) an investing policy statement
2) a target asset allocation.

If you get those two, picking between expense ratios becomes easy.

Tjat

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Re: Where should I get started to learn about low-fee mutual funds?
« Reply #2 on: November 15, 2015, 06:53:23 PM »
http://jlcollinsnh.com/stock-series/

Jim has a write up frequently referenced here and elsewhere.


In general, the message is
 
 - Active funds don't consistently beat the market
 - So put your faith in the long-term health of the economy/market, which has always gone up
 - Index funds (esp @ Vanguard) have low fees. Vanguard total market fund is 0.05% (admiral share)
 - Conversely, on top of Active Funds spotty long-term performance, their fees are atrocious

From fees alone, I can't recommend Betterment or even target date funds. Target funds are really there for people that can't be bothered to set an investment plan and check it even just twice a year. For that service, they pigeon hole into a strategy and charge a 1% fee...


fidgiegirl

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Re: Where should I get started to learn about low-fee mutual funds?
« Reply #3 on: November 15, 2015, 06:55:56 PM »

You might want to start with (before expense ratio research):
1) an investing policy statement
2) a target asset allocation.


I just saw the investing policy statement stuff today when poking around.  Is it like your personal philosophy of investing?

MDM

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Re: Where should I get started to learn about low-fee mutual funds?
« Reply #4 on: November 15, 2015, 07:31:25 PM »
Some shorter "getting started" reading material (note that these may not give identical advice, but if you follow any of it you will likely do well):
www.etf.com/docs/IfYouCan.pdf
http://jlcollinsnh.com/stock-series/ (as Tjat mentioned)
http://www.bogleheads.org/wiki/Category:Getting_started

For longer works, http://www.mrmoneymustache.com/the-mmm-reading-list/ - Haven't read them all, but A Random Walk Down Wall Street by Burton Malkiel and The Four Pillars of Investing by William Bernstein were good.

fidgiegirl

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Re: Where should I get started to learn about low-fee mutual funds?
« Reply #5 on: November 15, 2015, 08:06:49 PM »