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How can I build up a retirement account in a mutual fund without paying hefty fees?
You can do this easily by opening an account with a true no-load mutual fund such as those offered by Vanguard or T. Rowe Price. Nearly all funds offer automatic investment plans. You’ll sign a few forms, and the fund will automatically debit your checking or savings account every month. There’s no reason to pay a financial planner or other middleman big fees to do such simple paperwork for you, and you’ll avoid costly sales loads in the future.With most contractual investment plans, up to half of your investment in the first year or two can be taken by fees that the mutual fund pays to the broker who signed you up. Losing 50 cents of every dollar you put in is hardly the best way to start saving for retirement.Return to Questions
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