AssetPreserver News

Do you have an exit strategy for each of your investments?

Knowing when to get out of an investment is much more important than knowing when to get in.

Here is an article discussing why having an exit strategy is pertinent to your portfolio.

The Securities and Exchange Commission (SEC) voted to revamp the 12b-1 fees charged by mutual funds.
Originally, the 12b-1 fee, adopted in 1980, was to cover the cost of sales and distribution costs of mutual funds. In 1980 the total cost of 12b-1 fees was a few million; today (2009) it brought mutual funds 9.5 billion dollars. About two-thirds of mutual funds charge these fees.
Mutual funds have been increasing 12b-1 fees but at the same time touting they have no one-time sales load. Unfortunately, 12b-1 fees are charged year after year and eat into returns. They can be as high as 0.75% of a fund’s assets per year.
The new proposal is capping the fees at 0.25%. Funds will have to report how much goes to brokers as ongoing sales charges and separately list costs for marketing and other services.