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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
When you own a basket of shares in different companies you incur no fees whatsoever beyond your initial purchase of each stock. That will be roughly $7-8 per purchase. After that point there is no fee whatsoever for purchasing additional shares when you are reinvesting your dividends. Theoretically, if you made no additional purchases or sales you could live into infinity without paying another dime for your investments. Whereas mutual funds charge an annual service charge.

More importantly however is the fact it's not difficult to create wealth for one's family in the stock market. But, if you only have mutual funds you'll never understand the stock market and because you are not engaged you'll never see opportunities when they present themselves. I'm not telling anyone that they'll become masters of the universe overnight, but in time you'll become pretty good at spotting profitable opportunities.

I do offer a couple warning. Never day trade unless you are very smart and never let anyone else manage your money. No one cares more about your money and your family than you do yourself. [/quote]

All except the last paragraph is bad advice. That's the point of financial advisors and mutual funds. Most people [i]don't[/i] have the time to analyze the market and figure out an investment strategy.

I could study up and learn how to change the oil and brakes on my car, and that would be cheaper than taking it to a mechanic. I also care more about my car than the mechanic.

So why don't I do it? Because the mechanic is already an expert in how to do car maintenance, and I don't have time to learn this stuff.

[/quote]

Geez - how many dopey analogies are going to come up with?  Let me guess, the next one will be a dentist filling his own teeth.

Buying a basket of stocks and reinvesting the dividends is not the same as practicing medicine. It doesn't take a Nobel Prize winner to buy a basket of stocks. In the shirt term you'll make money and in the long term you may become very, very wealthy.

Never let anyone else manage your money. No cares more about your money and your family than you do yourself. [/quote]

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