American Funds
Hi Terry enjoy listening to you I wish you were on for two three hours you have such great info . I have some money in American funds I never hear you talk about this company is it a good company to be with ?
Thanks Tom
Terry Says
American Funds is a family of funds with excellent investment history. BUT, it is also a very expensive way to invest (compared to Vanguard, Fidelity and Schwab).
It markets its funds by compensating traditional brokers and financial advisors with commissions. To pay these commissions, its funds charge a combination of front-end loads, back-end loads, and higher expense ratios.
So you’re paying as much as 5.75% for this advice, plus annual fees. (Upfront commissions may be lower if you’re investing a lot more money.) These fees up front — and along the way — can take a deep bite out of your eventual results. And that’s why I never talk about American Funds!
Decades ago, when it required an advisor or stockbroker to help people get started in investing, it might have made sense to pay those fees. Now, if you pay attention to your own money you can stop paying fees and commissions.
