Seeking help, you may approach a broker to recommend funds. Unfortunately, regret is likely to follow. A broker’s main interest is in loads and other commissions from frequent mutual fund sales. Loads of 5.75 percent are common. On a $10,000 investment, you are paying $575. You can buy an entire financial plan from a fee-only financial planner for less. If over the years you buy $100,000 of mutual funds, you will pay loads of $5,750. The sum of $5,750 buys several lifetimes of financial plans complete with tax savings ideas, estate planning tips, and zero-load mutual fund picks. However, unless you ask specifically and insist on an answer, you will not know the dollar amount you are paying for the privilege of buying a mediocre fund. Loads can be paid on purchase of a fund (a front-end load) or on the
sale of the fund (a back-end load) or both. A broker will use confusion and complexity against you.