Wellness for Financial Grownups A grownup conversation about ETF's vs. Mutual Funds with TOAMS Financial's Mario Payne
Sep 13, 2022
Mario Payne, a certified financial planner and fiduciary who runs TOAMS Financial and launched the LetBe ETF, dives into the fascinating world of ETFs and mutual funds. He breaks down their pros and cons, emphasizing crucial factors like liquidity, expense ratios, and tax implications. Mario also warns about significant red flags investors should watch out for, such as the hidden costs of management and the risks of leveraged ETFs. Tune in for essential insights that can help you navigate your investment choices smartly!
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Launch Story Of The Let's Be ETF
- Mario launched the Let's Be ETF in February after running the same strategy in his practice since 2019.
- He notes the ETF and clients experienced smaller losses as markets fell in 2022 due to defensive positioning.
Expense Ratios Affect Net Returns
- ETFs historically carry lower expense ratios than mutual funds, reducing hidden ongoing costs.
- Lower expenses can improve net performance even when underlying holdings perform the same.
Use Mutual Funds For Target-Date Glidepaths
- Use mutual funds for target-date and retirement-plan needs that auto-adjust asset mix.
- Rely on them when you prefer a hands-off glidepath that becomes more conservative with age.
