Phil Cannella has made it part of his mission to expose the truth about Mutual Funds and the hidden fees and risks inherent in these types of investment vehicles. He makes the point that there are so many fees over and above the ones that are made obvious to the general public. When you go on Morningstar and you type in the ticker symbol for most mutual funds you will probably see that the fees range from 0.7% to 1.5%. Believing that that is the totality of fees, a consumer could be largely mistaken. Mutual funds do not disclose all of their fees and you have to look at the Statement of Additional Information to get a handle on just some of the additional fees that are not made obvious. There are also transaction fees and trading costs that are often overlooked based on the turnover of stocks and investments within the mutual fund portfolio.
Phil Cannella makes the point that on average, mutual fund fees range between 2% – 3%. There is a huge lie that Wall Street covers up. Assuming you get a 6% or 7% or even 8% return on your investment on Wall Street, but after that, you have to remove the fees and you are down to 3% – 5%. If you are taking all the risk in a mutual fund, then the return should be closer to 8% – 9%. Otherwise, the fixed class of assets can get the same return, 4% – 6% without any risk and without any loss of principal.
This is the crux of Phil Cannella’s exclusive Crash Proof Retirement System which utilizes financial vehicles without any hidden fees, which still provide for good growth and guaranteed protection of principal.