The Case for Precious Metals
What about Buy-and-Hold Mutual Funds?
"Wealth is neither created nor destroyed! It simply flows from the uneducated to the educated (or from the uninformed to the informed)."
MUTUAL FUND FEES
ARE COSTING YOU 63%
OF YOUR RETIREMENT EARNINGS!
The typical investor pays over $155,000* in unnecessary mutual fund management fees over a lifetime!!! Don't believe it? Watch this PBS Frontline documentary to learn the dirty little truth about the retirement planning industry. What's more, 79% of fund managers don't even meet, let alone beat, the S&P 500 index! Don't DO mutual funds or RRSP's until you:
Try it for yourself. Use the CALCULATE NOW button to examine the corrosive effect of fund management and administration fees on your lifetime portfolio returns. Assume whatever parameters you like to see the effect that a 2% reduction in the rate of return (to reflect the tyranny of compounding mutual fund fees) has on your retirement savings.
Starting at age 18 and investing for 47 years with $0 initial deposit and adding $100 monthly to your savings, increasing contributions by 2% inflation at 6% annual interest, compounded quarterly, your total portfolio grows to $416,311.58. If you drop the interest rate by 2% to account for annual management fees, your total return is only $235,447.93.
The difference of $180,863.65 went to your mutual fund company and advisor. That's a total of ($321/mo) $3,848.16 per year to have a managed mutual fund portfolio and to pay your sales advisor for advice that underperforms the market 80% of the time! We can show you how to do it yourself for one tenth the fees!
MY MUTUAL FUND PERFORMANCE TESTIMONIAL:
As a financial advisor between 1992-1996, with Canada's leading mutual fund company, I made a small investment into two different portfolio mutual funds. Between October 1, 1999 to June 30, 2021, I have made no contributions nor changes in either plan, nor have I made any withdrawals from them. Given the small amounts of money, I chose to leave those funds therein, while simply following the typical money mantra of 'buy-and-hold', -allowing all dividends to be re-invested. Recently, I assessed the performance of these mutual funds during the market volatility of markets of the past 22 years, by calculating the actual long-term Return on Investment for both funds using this on-line calculator or this one. Not even factoring in the rate of inflation, which would have eroded the actual purchasing power of these two investments, I was shocked and dismayed to discover the detrimental effects of 3.02% and 2.65% mutual fund management fees on these respective funds.
James Steele IV - Wealth Coach
Had I instead been informed about "real money", my total 15 year investment of $913.99 invested in Gold or Silver bullion would have yielded dramatically better results. The historical bullion prices I used are available at Kitco.com. The investment comparisons are shown below:
My combined investment of $913.99 into Gold or Silver bullion, rather than the two mutual funds, would have yielded 151%-201% higher portfolio values respectively. A Gold portfolio would have grown in value to $5449.37 and Silver to $4080.12, rather than the mere $2709.89 combined mutual fund portfolio valuation that I did achieve. But mutual fund salesmen will tell you that precious metals are a poor investment.
The numbers don't lie, but salespeople do; or they just aren't taught about real money!