There are several ways to invest your savings depending on your age, risk profile and many other factors. Typically most investors choose to invest in mutual funds because of the diversity and “somewhat” security they provide. When selecting mutual funds it is most important to look at the expenses related to the different share classes. As a fee based planner our firm has chosen to offer only financial advice and sells no securities to our clients. Too often the problem is when people meet with a planner they work 100% on commission and tend to sell only those investments and life policies with the highest sales charges or most commission to the broker. If you purchase funds through a broker try to stick with no load (no sales charge over 1.25%) mutual funds and they should also have a low expense ratio.
Ask your broker to provide a couple of alternatives for you so you understand options.
We also prefer clients who purchase funds through a fund family as opposed through a brokerage account. If for example you purchase funds through Oppenheimer or Fidelity you are able to trade without commission there funds available. This gives you the option to trade different fund sectors and not pay a fortune in trading costs. In a brokerage account you may be paying up to $100 per trade, however in a fund direct plan you can trade inside the plan without additional charges (Be sure to check other rules such as trades per year.)
We always advise working with an independent Certified Financial Planner (CFP).
