Get the latest investment articles in your inbox.

This is the final post of a four-post series about my new white paper, “Stop Wasting Your Money in Mutual Funds,” which exposes how hidden mutual fund fees are costing investors like you millions of dollars. To receive your free copy, click here.

Americans spend hours calculating their gas mileage just to save pennies at the pump each week.


Many of those same Americans have spent zero hours calculating how much they’ll need for retirement savings.

That’s quite a problem, considering many couples are racing toward a 30+ year retirement – putting them in grave danger of running out of money during that retirement.

We’re nearing the golden age of the tech boom. Calculators are readily available and hardly cutting-edge.

Clearly, number-crunching is not the issue. It’s fear.

Few people want to face the grim reality that they’ll need millions of dollars to maintain their lifestyles post-career.

Mutual funds have been the go-to investment option for Americans since my dad, William Berkowitz, created many investor-friendly mutual fund types at Dreyfus in 1960s and 1970s. But as the industry has swelled to $13 trillion, the pitfalls of mutual funds have also ballooned.

Rather than investing in mutual funds for retirement savings, choose an investing firm that allows you these freedoms:

  • Invest the way wealthy people invest — in separately managed accounts. Investing in the stock market used to mean buying stocks in a separate account – the realm of the affluent. Main Street America could not afford the stock commissions and the minimum dollars required. Until our special separately managed accounts, mutual funds were the only way the average American could get in on the growth potential of the stock market.
  • Buy companies that create value for you. Seek companies with high economic profits or Economic Value-Added (EVA).
  • Demand full disclosure from advisors. Engage only advisors who disclose ALL forms of compensation and who are legally obligated to act only in your best interest.

My dad envisioned mutual funds as a vehicle for Americans to save for retirement. He invented the consumer-friendly money market mutual fund – which offered high-interest-rate savings accounts – then reserved for the affluent and wealthy – to Main Street.

I’m furthering his vision by offering a way for every investor to earn the higher returns earned by stocks of great companies without layers and layers of fees sucked out of your retirement funds by Wall Street.

You need to start fueling your retirement savings with something other than mutual funds. And my new firm, ValueAligned® Partners, can help you do that.

I’ve reached the end of my blog series about my mutual funds white paper. If you STILL haven’t signed up to receive your free copy, simply click here. You won’t regret it!


Image credit: cohdra l morguefile