Now that taxes are out of the way, it’s time to think about paying yourself. Whether you are saving for retirement, a college education or just some random future item, you may well be using mutual funds.
Mutual funds are investments that pool money from many individuals. A professional portfolio manager invests the money to meet the particular fund’s investment objective. This way, you get more diversification and expertise than you could get on your own.
Naturally, you pay for this service. Mutual funds have a series of charges. Understand what they are, and you may be able to improve your performance with very little work. For tips from an expert, read the full story on this topic on our sister site, Living on the Cheap.