Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

The Best Guaranteed Investment Boost.

April 20, 2017 at 5:00 AM

If you have been invested in U.S. stocks the past few years you have no doubt made some serious money. The U.S. markets are up more than 300% since this bull market began in 2009. But I want you to understand that great returns are in no way a guarantee going forward. Yes, stocks are always the smart investment if you are a long-term investor, but I hope you realize that over the next 10 years we might not see such robust U.S. stocks returns, simply because they have had such an incredible run.

That’s not a reason to bail on stocks. Again, for your long-term goals—such as retirement-you want to stick to a well-diversified portfolio. But you can give yourself a nice investment boost if you make sure you are investing in the lowest-cost index mutual funds or exchange traded funds. There is a wonderful fee war going on among some of the big fund and ETF providers, such as Vanguard, Fidelity and BlackRock. They keep reducing the annual expense fee on their funds and ETFs. You can now invest in ETFs that charge an annual expense ratio of 0.10% or less. That’s less than one-tenth of one percent! Some index mutual funds charge just 0.20% or so. That’s also an incredible deal.

I know plenty of you have old 401(k)s from former jobs that you’ve just left sitting in that plan. If your old employer plan offers low cost index mutual funds (few 401(k)s offer ETFs) it’s fine to leave it there. But you better really check. If your old 401(k) is invested in funds that charge a lot more than 0.10% to 0.20% I think you are wasting money. Plenty of you will be surprised to find out you may own some funds that charge 1% or more a year. That’s 10x what you can pay for an inexpensive ETF. And the difference between paying 1.0% and 0.10% can mean your retirement fund will be tens of thousands of dollars smaller than if you made the move to the inexpensive options.

Please understand, once you leave a company you are allowed to move your 401(k) account to any discount brokerage. This is called a 401(k) Rollover into an IRA. You will owe no tax if you do a “direct” rollover from your ex-employer straight into your new IRA account. And once the money is at the brokerage, you have the freedom to choose among plenty of super-low cost ETFs and index mutual funds.

Tag Cloud

pay interest while in schoolFinal Goodbyedental savings planfamily save at least $100 monthlyHeartdon't buy wantsloan no longer than 36monthsidentity fraudsmall changes grandchild summer job IRA contributionmental healthCommencementgift grandchild IRA contributiondepreciating asset Long Term Care shoppingpaying for collegeEmployer Matched Contributionhigh FICO scoreitemized deductionRevocable Trustraising interest ratesMoney Marketmax employer matched 401(k) contributioncompare provider pricingJose RodriguezOne Wallet At A Timeresponsible with moneyzero rate transfer dealseight month living expense Baby BoomersPBS SpecialHSA tax savingsno private loanbill paying prioritiesFinancial Awareness Video Festivalpresident ObamaFiscal Responsibility3 bucket approachproperty taxAARP Social security calculatorInfluentialsbuying a carlet them have 50% control30 year mortgage Marlo Thomas50 over 50secured cardSuze Orman spouse Kathy Travishealthy retirement blood pressureSpendingGiftalways use all paid time offIRA contribution gifted moneyconsider roth 401(k)Free Debt Eliminatorautomatic withdraw to savings ritual scheduleage appropriate choreonly refinance if it paysstudent loan repayment estimatorHDHP's are good for youget the most out of social security store credit cardsnew car20 year level term buying car 2016mortgagerepay student loansback-to-school budgetteach importance of helping othersraise deductiblesUniversity of Floridacredit unionAuto Savings raise your deductiblecouple financeshome ownershipStock Investmentslife insurancereal estate market19 years cash flow problemfile asapderailed planHigh FICO Score = Better RateFinancialtax ID theftemergency fund back door Roth IRAmonthly dental insurance premiumprotect and provide for minor child financial independence2017 Taxesstandard deduction professional advisordoctor no longer in networkStaffords this year have a fixed 6.8% interest rateFICO Scoreallowance taskWall Street2015 financial roadmaphome budget after tax costbetter loan ratesescrowultimate compounding giftOverspendingBeautyemotional stakescostly insurance mistakeannual cost of living adjustmentdon't cover cosmetic dentistrySuze approvedloan big picture pay high rate off firstadvice for college graduatesalternative FICO scoremultiple lenders20 to 25 times annual incomecost of capitalization calculatoruniversal college accessMortgage Credit Availability Indexno splurge Communication Skills confidentPrime Rate Increasecar leasingopen enrollment review 3 savings buckets public service career student loan repayment retirment savingsFinancial Educatorlow-cost index mutual fundcalculate dependents annual income needsat worst still pay 75% benefitadult childrenclosing costs 2% of loanexercise reguarlyAshley Springerearn more on savingstraditional vs roth 401(k)get health insurancedear suze401(k) ContributionsInterestNew York Lifehigh credit score discountHolidayprovider of financial supportPhyllis Shelton expert long-term careSelectQuote.comco-sign kids schedule paymentspurely financial standpointfinancing car School of Social Worktaxesrefundkeep a schedulelousy investmentlower raterequired disclosurekid borrow firstdoctors in networkunexpected expensecredit reportCOLAdon't ignore open enrollmentfocus on new truth Long Term Care premiumsgift not loandangerous retirement planmarriage inequalityunsubsidized Stafford loanwould you decline a bonusretirement accountsHigh Credit Scorerolloverreduce withholdingGiftsRetirement Incomestudent loan debtmortgage interest tax deductionverify wellness screening and programsDeath Benefitdental insurance death benefit 20 to 25 times annual incomedon't charge a pennywives should be involved in retirementLegal GuardianFICO at least 720iffy incomeLTCfinancial argumentslife insurance name trust as beneficiaryConventional loan PMI8 month safety nettitle insuranceSuze is my biggest mentorignore 6 month grace period powerfulCory Booker8 month emergency fundretirementLifestyleholiday spendingfinancial aidget over life insurance phobiaLTC shopping10% donate to charitybecome member pay 100% cashlower interest ratewomen outlive menlower premiumlong-term care premiumslowest cost fund optionoverspend on nights outis it necessarychildren's bookreduce interest ratecredit utilization rateretirement plancnbc alarm clockorigination feesSuze Orman's Money Wars20% down paymentUniversity of IllinoisYoung Adult buy homephysical healthleave a legacyface your financial fearhealthy aging short term goal insurance yearly reviewfour steps to retirement savings closing feesbuy home you can affordBill and Pennydebit cardadjust allocations interest capitalizationmaintain standard of livingStudent Debtbudgetswitch to roth 401(k)Sandy Hook Promisehigher monthly payment401Kquick closingclosing disclosureincrease retirement savingsemployer offered life insuranceterm insurancehealthy youresponsibleSatisfyingFederal Reservebalance transfer is it necessary?teens and moneyhigher insurance deductiblecommissionsGraceno negativityCivil RightsSuze Orman Scholarshipmobile appschool lower overall drug costmortgage disclosureBankruptcysummer job match income juggle multiple financial goalsworkaholicBankhousing marketHDHP's are not badmonthly benefit no private loansenjoy saving studentno tax on withdrawls15-year refinance deallong-term care Gay Rightscollege studentwomen live longeris it true? 40% toward financial goalpay down car loanETF'sshorter payback periodpermanent life insurancefinancial goal phraselong term careoverspend on giftsAmericans don't use all paid vacation timeVeterinary SchoolInflation Benefitfederal student loan deferment social worklearn good financial choicesbe kind to yourselfsame-sex marriageLTCi ASAPhome loan credit score below 740 confident of solutionincrease emergency savingsGay CouplesExhibitioncontribute household expenses money vowssuitablebuy down Suze changed my lifehealthy gumscredit managementlive below your meansLoveschedule vacationsocial securitypay credit debt ASAPis it kind?stay positivebad retirement planningFinancial Awarenessdon't do five year car loanWashingtonCredit Card Interest Ratepeace of mindSandy Hook Elementary Schoolborrowing plan meet monthly age appropriate goalssave savings pleasureprotect loved ones be true to yourselfinitial tax break setup automatic savings withdrawno retirement funds for down paymentwrite new goalpercentage of women widowed 75-84home insurancebetter termsdebtcommunity collegeburn outCredit Card Rate Increase2015 record year car saleseliminate credit card debtCPI-Wstretch out haircut appointmentsRetirement Savingsidentity theftdon't spend Urbana-Champaigndental discount planFederal PLUS loanteenscut monthly cable billprotect dependent prescription tieremployer funding HSAMust Have DocumentsSave Us Moneyterm life insuranceroth irafull retirement ageno apologypercentage men widowed 75-84best interest ratespositiveAdequate Auto and Home Insuranceshop online guaranteed level term policyForeclosureInvest for savings growthfinancial concernstudent loan repayment plangay marriage ban end Florida Prime Rate Rise 2015increase retirement contribution rateinsurance mistakedon't extend mortgage !00% tuition paid3 step financial road mapCombo Insurance ProductsAccuQuote.com740 credit scorehome buying budgetprotect your familySelfishmax benefit covered6 month waiting periodFinancial Cliffspecial saving accountdeath benefit needs for familyadd teenVital Documentscredit cardno life insurance financially irresponsibleFederal Stafford loanaccelerate dental workdon't defer interest paymentsbe good example20% down payment avoid feessame sex marriage band end Floridatelevision hostplanFunds3% debt transferred grandparent IRA contribution anticipated salaryHDHP/HSApoint cost offset by savingsMass Mutualno sneaking in feescommunity bank10 year repayment plan Forbeslow credit scorecommithigh down paymentpay more than minimumstaycationcollege graduategift up to 14,000New american Dream verify retirement plan with HR or plan sponsorspeak new goalcostly legal compare monthly expensesincreased auto insurance premiumFederal Funds RateHoliday Shoppingdon't use allowance as bribelow down paymentmortgage brokerengaged in financesmake saving a pleasureapproved medical 100% tax-freecar loanbest loan deal 4 Must Have Documents Teachthree year car loanone annual feemarriage financial responsibilitysecure creditfile taxes quicklyhighest possible benefitSwap Older Annuities or Life Insurance Minor Children ARMretain separate credit cardsno waiting periodspring summer Goodbyebad decisionspay off debtAlarm Clockborrow each year, capitalization is going to pile up 15 year mortgageallowanceheartacheNewtownstrained relationshipsidelinedrising home pricesovercome financial fearsnon conventional routeloved ones dependent on incomecharges on credit cardFinancial Advice2016 adjust withholdingpaid vacationraising mortgage rates 8 Rulesearn allowanceRevocable Living Trustavoid burn outPay Off Debt Before Retirementtoo expensive schoolhome buying mistakesEasy Life Insurance interest on student loanssuccessCD'scar buying mistakesFHA loan feesFixed Rate Mortgagedo you need life insuranceloan is giftpremiumhome buying seasonstudent loan repaymentpaid in fullworst financial mistakedo not pay allowance for good behaviorhigh deductible health care plansavingsfocus on needsswitch to spouse coverageteach your child good money habitssave moneyjanuary billsautomatic paymentMotherpush yourself to save more for retirementInfluential CelebrityAmy Lacyetlower mortgage interestStudent Debt Crisismax employee matchvalue moneyThe Suze Orman ShowCNBCloan necessityFinancial SystemMost Influential Celebrities Listno interesttake actionsocial security never insolventno fee transferdon't blow tax refundMoney-Savingrent vs buyrefinanceHoliday Seasonhome related tax break bonus Long Term Care Insurance Durable Power of Attorney for Health CareRoth 401(k)real estate mistakesdangerous money seasonfraudulent returnPersonal FinanceFinancial Gift CliffHDHP US Tax CodefiduciaryFICO credit score credit card mortgageWillPost-Divorcemoney-aware childletter to suzesocial security not going brokevalentines dayRichCredit score2016 adjust estimated taxtax refund fraudincentives for health care wellness screeningbetter loan dealsone credit cardstandard rateCollege of Veterinary Medicinerequire chore in exchange for allowanceoverspend on dining outmanage student loansaffordable premiumcan you afford itgraduationpreexisting condition not coveredreplace permanent life insurance with termemergency fund savingsFinancial Solutions For YouSuze OrmanARM CautionFinancial Power of Attorneycreate new truthcomparison shoppingreferrals low mileage discountyours, mine & oursnot enough life insuranceget credit cardnear historic lowspublic service loan forgiveness programForbes Top 10TelepicturesStudent LoanMoneyonly offered while employed best interest of investorAARPknow before you owedream schoolautomate student loan paymentswomen long term careChanging LivesEmergency Savingsreduce monthly paymentHow To Build Creditfinancial fearscut monthly cellular billhigh premiumsCiti Simplicity Card breakdown projected monthly housing cost20% equitywaive home inspection bidinsuranceFRAnot gender specific raise insurance deductiblepay down student loan debtno late fee under 18 financial gifthealthy teethlong term goalwomen longer life spanbig results negotiate points with bank or sellerhealthy retirement weightdebt freechildren under 18contribution don't derail retirement savingsEric Dodge Warner Bros Television GroupHDHP'saffordability

View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel