You may think you are holding some of the highest rated funds, but in reality they could be total dogs. 88% of 5 star rated funds by Morningstar were underperformers. Learn the steps you should take right now to make the most out of your mutual funds.

Main Questions Asked:

• Do you have any mutual funds whether it’s 401k, IRA, 403b, etc. in your investment fund portfolio?
• How are your mutual funds really performing?
• What are the steps that you should take right now to make the most of your mutual funds?

Key Lessons Learned:

The Ugly Truth About Mutual Funds - Past Performance Is No Guarantee of Future Performance

• Risk is a big issue. Most people are taking more risks than they know. You may see better returns with lower risk. Your underlying securities are the key to your retirement. If you don’t have the right mix you could pay a heavy price.
• Diversification and asset allocation. When we look at actual portfolios we are finding that these important concepts aren’t being paid attention to. We find that there was no analysis and a solid plan with projections was never made. Asset allocation is spreading investments over different asset classes.
• Are mutual funds even right for you? When you get to a certain amount of money individual securities might be right for you. It’s very important that you understand what you own and have a plan that is right for you.
• You could be holding some underperforming funds in your portfolio. When is the last time you rebalanced the funds in your account? Is it possible that you are holding underperforming funds that are costing you money every single year?
• How are you going to minimize investment fees and expense? Mutual funds have embedded taxes. Most people don’t realize the fees that they are paying, because trading fees aren’t disclosed in the expense ratio. Minimizing investment fees and expenses is the fastest way to improve your rate of return.
• How there can be a 2% to 3% or more cost to hold a mutual fund. If the market goes up 8% your fund may not. Funds that trade more often generate more fees on the backend.
• Nobody cares more about your well being than you do. The bottom line is this. You have to get engaged in your financial game plan. Make sure that your plan takes into account your appetite for risk. If you have an advisor that isn’t listening to you, get a new one. Get an advisor that you trust and create a comprehensive plan that takes into account your individual situation.
• How people who don’t have a lot of wealth sabotage themselves. Wealthy people hire someone else to give them help. Don’t just wing it. Find someone who you can trust to help create a plan that includes health care, long-term care, taxes, investments, income, and everything that you own.

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

The Morningstar Mirage

Thank you for listening!