Investing In Retirement,  Our FIRE Movement & Debt Free Goals

ETFs and Mutual Funds; Investing in Retirement Part 2 – Mutual Funds

ETFs and Mutual Funds; Investing in Retirement Part 2…Mutual Funds.

1. Mutual Funds, much like ETFs are typically made up of stocks, bonds, money market, & other assets.

2. Mutual Funds are actively managed unlike ETFs which are passively managed by money managers. They allocate specific percentages to produce income for investors.

3. Majority of the money in an employer based retirement is in mutual funds.

4. Mutual Funds, unlike ETFs, don’t actively trade throughout the day, but settle the shares at the end of the day.

5. Mutual Funds often present with stock symbol containing 5 letters, like “FXAIX”. Which ETFs are often seen with 4 letters, like “FDEM”.

6. Mutual Funds can consist of money market funds, sector funds, target date funds, & equity funds. Each have different assets and volatility.

7. With Equity based Mutual Funds (stocks), you have Small, Mid, & Large Cap Companies that offer assets of Value, Blend, & Growth.

8. Mutual Funds do have expenses, called “expense ratios” that can range less than 1% to 3%. These expense ratios are essentially the fees money managers charge for actively managing them. ETFs often have zero fees since they are passively managed.

Stay tuned for Part 3!

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