Net Worth Advisory Group of Salt Lake City, Utah, Promotes Low Investment Fees

Nov. 30, 2010 - PRLog -- Net Worth Advisory Group of Salt Lake City, Utah, has disclosed a comparison of the costs involved with investing through their service as opposed to investing in mutual funds. The comparison utilizes the investment costs identified in a new study by State Street Corp. and the Wharton School of Business in Pennsylvania.

The following is a portion of the study's findings:

"Typically, actively managed equity-based mutual funds without commissions (no-load) charge about 1 percent to 2 percent each year inside the fund, to manage and operate the fund. However, there are additional costs that are not typically considered in the cost equation. Transaction costs -- the costs to buy and sell stocks inside the fund -- can add another (undisclosed) 0.5 percent to 1.5 percent annually to an investor's cost to hold that mutual fund investment.

Additionally, when fund managers are faced with redemptions, they must sell securities from the fund's holdings to provide cash for the redemptions. When these securities are sold for a gain, the sale triggers a taxable event for the remaining investors holding the fund in non-qualified accounts, whether the investor has been a shareholder for 10 years or 10 days. Furthermore, many funds wait until late in December to make their capital gains distributions known, leaving little or no time for investors to make other decisions to offset the tax liability. These costs can add an additional 0.5 percent to 2 percent to the annual cost for investors."

Combining these fees, investing in a mutual fund can incur charges of between 2 percent and 5.5 percent -- obviously significant. Keep in mind, this study doesn't even account for any additional fees charged by a financial advisor for monitoring your account. This illustrates the importance of keeping a close eye on fees when analyzing potential investments.

By comparison, Net Worth Advisory Group charges no more than 1.5 percent for their services. This is an all-inclusive fee, covering investment management, transaction fees, and meeting twice a year to review investment performance and update client's financial plan. Further, Net Worth Advisory Group invest their client's funds into individual stocks as opposed to mutual funds, saving clients fees and allowing more control over tax implications. Lastly, Net Worth Advisory Group's advisors shake the hands of their clients, develop personal relationships, and provide individual-specific advice -- something a mutual fund can never do.

More information can be obtained at http://utahfinancialadvisor.blogspot.com.

About Mr. Jefferies

Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a member of the National Association of Personal Financial Advisors (NAPFA) and a candidate for CFP™ certification. He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as FIGuide.com and FILife.com (by The Wall Street Journal). Additionally, Lon is a platinum expert author at EzineArticles.com. Lon has been quoted nationally in publications such as the NY Times and Investment News.

Contact Info

View Lon's blog at http://www.utahfinancialadvisor.blogspot.com, and visit Net Worth Advisory Group's home page at http://networthadvice.com. Lon can be emailed at lon@networthadvice.com, or phoned at (801) 566-0740.

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Fee-Only Financial Planner
Net Worth Advisory Group
6975 Union Park Center, Suite 465
Midvale, UT 84047