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Think about your needs. What do you expect or want from
your investment firm? What is important to you? Some firms
place great emphasis on a single factor, such as having the
lowest expense ratios or the largest number of funds. But
there are many additional factors to consider.
Many self-directed investors seek a variety of services from
their investment firms. What specifically are you looking for?
Do you:
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Rely on the ability to pick up the phone and
discuss your portfolio with an experienced
investment specialist?
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Want a helpful Web site that's easy to navigate and
provides resources so you can compare funds, set up
an asset allocation plan, and monitor your investments
over time?
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Want a wide range of financial services that will
meet your needs today and down the road as your
needs evolve?
Once you've decided what's important for you, find a
company that offers these services. It's important to
choose a company with a solid reputation for integrity
and responsibility. A variety of resources provide objective
information to help you evaluate investment companies.
Third-party, reputable industry sources can be a good
place to begin.
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Worldwide, mutual fund assets have reached $26.2 trillion,
and this number continues to grow. The U.S. market is the
largest in the world, accounting for nearly half of this amount.
Today, 46% of American households own mutual funds.
As mutual fund assets have grown, fees and expenses
have declined. For stock funds, expense ratios fell from
2.32% in 1980 to 1.02% in 2007. For bond funds, expense
ratios decreased from 2.05% to 0.79%.
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 Next: Portfolio Remodel
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