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Answer A Few Questions Use our easy-to-use interactive guide to answer a few questions about your investment situation, current portfolio and risk tolerance. |
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Get A Personalized Portfolio Based on your answers we'll create a personalized portfolio that meets your investment goals and saves you up to 80% in fees. |
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Purchase Your Portfolio Buy your portfolio at your online broker just like you buy stocks. Come back to MarketRiders and tell us what you paid for each share. |
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Receive Rebalancing Alerts Rebalancing improves returns. We'll watch your portfolio and alert you when you need to rebalance it. |
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Mutual fund and investment adviser fees can slowly erode up to half of your retirement savings over twenty years. They're like small cancers, slowly killing your savings.
That's why Mint is recommending MarketRiders. We'll get Wall Street out of your pocket, cut your investments fees by 80% with an Exchange Traded Fund (ETF) portfolio, and help your money grow faster.
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Investment amount: $100,000 |
Investment years: 20 |
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How did we calculate these costs? | ||
What is an Exchange Traded Fund (ETF)?
ETFs are funds that trade on the stock exchange just like any stock. And you follow the same procedure at your online broker to buy an ETF as you would any stock like IBM or GE. It should cost you between $4 and $10 per trade.
ETFs are not a secret, but investment professionals often don't make fees from them, so they go ignored.
Each ETF is a "basket" of stocks that represent a particular index. For example if you wanted to own every stock in the S&P 500 Index, you would by one of several ETFs that follows that index - an example being "SPY" or Spiders. By owning one share of SPY, you gain diversification across 500 stocks.
With ETFs you can invest in practically any market you want. Some of the most popular indexes are the S&P 500 (tracks the largest U.S. public companies), the Russell 2000 (tracks some of the smallest U.S. public companies) and the Morgan Stanley Europe Asia Far East (EAFE) index composed of companies in developed foreign countries. ETFs also allow you to invest in real estate, bonds, commodities, sectors and other markets. There are currently over 800 ETFs now available and growing.
Mutual funds are 6 -10 times more expensive than ETFs because they hire pros who try to select a few stocks within the index that will "beat" it. But when you invest in an index fund, you basically get the exact returns of the index.
Since computers (not humans) manage the stocks in an ETF, the fees are very low. MarketRiders portfolios employ the best ETFs based upon low fees, high trade volume and low turnover (which reduce taxes).
How Did We Calculate These Costs?
All MarketRiders portfolios are built using Exchange Traded Funds (ETFs). ETFs are functionally similar to mutual funds in that they are collections of individual securities that can be purchased from your broker as a single security. ETFs, however, are significantly less expensive to own than mutual funds because they are managed by computers instead of people. Whereas the average mutual fund charges an annual fee of 1.5% and likely eats another 0.5% in taxes, the average ETF only charges 0.2%. Why pay ten times more for the same thing?
For example, take a $100,000 portfolio. Using the long-term average growth of a stock and bond portfolio of 8% a year, compounding your gains over 20 years, and deducting the 2% in fees and taxes, you'd have $304,946. But if your fees and taxes were 0.2% instead of 2%, you would have $446,906 - a difference of $141,960 or 47%! Throw a financial adviser's fees on top of the mutual fund expenses, and you can see how much money you are losing to the Wall Street machine.
