Posts Tagged ‘Reference’
October 18th, 2009 | 
Author: There are many ways the universe offers us guidance to protect ourselves, but we usually just turn our backs on this guidance because we don’t recognize it as such. The little voice inside you is actually a powerful signal—I believe it’s the voice of God— and if you listen to it, and take action based on what it tells you to do, it will keep you safe and sound. This sixth step to financial freedom is about finding that voice inside you—and learning to listen to what it has to say.
Posted in Let’s say all you ever invest is $2,000 a year in an IRA, and you put that money in a loaded mutual fund with a 5 percent commission. (The difference between loaded and no-load funds is explained in Step 6.) Five percent of $2,000 a year is $100. If you start your IRA at the age of twenty-five, by the time you turn sixty-five that $100 that you did not need to spend invested at 8 percent a year would have added up to $25,905. It seems to me that the one who will eventually be loaded is that broker who is selling everyone these funds.
By the way, this calculation does not include the charges incurred every time you sell the loaded fund you’ve invested in in order to buy another one. If you were to do this just OflCC every ten years for the next thirty years, assuming that your funds grew at the rate of 10 percent, you will have paid another
$15,593 in commissions on just the principal, not including the $25,905 you could be saving on those commissions. Over $40,000, and you did not think it was such a big deal?