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Statemnent:Your Employment in a Job Not Covered by Social Security - 21 views

shared by Oscar Tapara on 14 Aug 13 - No Cached

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Stocks, Bonds, and Investing: Oh, My! - 30 views

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shared by Oscar Tapara on 11 Jul 13 - No Cached

However, that is not the case with ETFs.
- Oscar Tapara on 11 Jul 13
  
  ETFs doesn't has fees?, just 1.5 of your investment?
  
  <div class="cArrow"> </div><div class="cContentInner">ETFs doesn't has fees?, just 1.5 of your investment?</div>
  
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- Oscar Tapara on 11 Jul 13
  
  No, just fro .18% NAV. So. you are trading mutual fund for very cheap
  
  <div class="cArrow"> </div><div class="cContentInner">No, just fro .18% NAV. So. you are trading mutual fund for very cheap</div>
  
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The good news is your costs.
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ETFs are created by companies for the specific purpose of low management costs, estimated to be around .18% of your NAV.
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...18 more annotations...
But Wait! There's More.Again
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There is yet another advantage ETFs have over mutual funds
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and that is their tax benefit
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However, unlike mutual funds, ETFs do not sell stocks to pay for redemptions
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As people withdraw their money from a mutual fund, the mutual fund must sell securities to cover those redemptions. So, every time the mutual fund sells a stock, you have to pay capital gains tax on it.
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This being the case, the capital gains that you must pay on an ETF are much less than that of a mutual fund because of the lack of capital gains.
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Danger, Will Robinson!
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However, be careful not to confuse
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an ETF
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ith an Indexed Mutual Fund
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Indexed Mutual Funds are mutual funds provided by a mutual fund company
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But, just like any other mutual fund, you have to pay fees
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Vanguard will charge you managerial fees to set up and manage the fund.
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The ETF's Potential Disadvantage
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they do have a potential drawback
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What it really depends upon is how much you are going to invest and how frequently you are going to invest.
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If you're only going to invest $200 a month in an ETF, the $20 commission results in an immediate 10% loss,
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Just something to think about before you jump into ETFs.
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