By Philip van Doorn
Also, estate planning, a successful stock-market timing strategy and tips about housing and taxes
You may be aware that a standard fee for a financial adviser at a brokerage firm is 1% of assets under management. The fee might be lower, depending on the size of the account, the extent of the services offered and even the type of assets being invested in.
But 1% is significant when you consider that the S&P 500’s SPX average annual return over the past 30 years has been 10.6%. Fees paid for active management can really add up, and it is quite possible that a long-term growth investor will underperform the index. Some index funds charge very low fees because they are passively managed. The SPDR S&P 500 ETF Trust SPY, which is the largest exchange-traded fund and tracks the S&P 500 by holding all of its stocks with pretty much the same weightings as the index, charges an annual fee of 0.0945%.
April is Financial Literacy Month and MarketWatch has a better name for it: Financial Fitness Month. Continuing this special series of Articles, Beth Pinsker explains how anyone can get financial advice for free.
More on financial fitness:
What is a good credit score – and how can you improve yours?With inflation running hot, Series I bonds are still a smart move for yield and tax advantagesI earn $120,000 a year and have $165,000 in savings. How do I invest in this high-interest-rate environment?Progress, not perfection: Gen Z has made some extraordinary financial moves but still needs help
Earnings season is here – big banks begin and others report
Early on Friday, three of the largest U.S. banks announced their first-quarter results. MarketWatch’s live earnings coverage included results for JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Wells Fargo & Co. (WFC), along with additional commentary and analysis.
More coverage of corporate results:
Delta’s results are further proof…
Read the full article here
