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TRUMP UNIVERSITY WEALTH BUILDING 101

If you buy bond funds, you can and should minimize expenses by invest-
ing in low-cost funds. Vanguard Group charges the lowest amount in the
industry and offers a wide variety of well-regarded bond funds, followed
closely by Fidelity and T. Rowe Price. Charles Schwab and other discount
brokers offer funds from additional fund families at no extra cost.
No matter how you invest, be sure to keep your investment expenses
down. This can make quite a difference in your investment return. While you
cannot guarantee how your investments will fare, you can control how much
you pay for them.
Suppose you have a $250,000 portfolio. If you net 7 percent a year on
your investments, $250,000 will grow to $491,787 in 10 years. But if you can
keep 1 percentage point more by watching your costs, you will keep an extra

$2,500 the first year. If you reinvest each year’s savings and earn an
8 percent net return on your investments, you’ll end up with $539,731—
9.7 percent more. Think how the differences will add up over 20 to 30 years
or more as your investment assets grow.

Like most worthwhile goals, investing for your financial security in
retirement won’t always be easy. But when you educate yourself and prepare
for success by practicing what I’ve shown you in this chapter, I guarantee that
you’ll be very pleasantly surprised at the wealth and peace of mind you’ll
achieve.

For More Information

For investing, read The Wall Street Journal ( www.wsj.com ), and Investor’s
Business Daily ( www.investors.com ).
To research stocks and mutual funds, visit www.morningstar.com .
To learn about, and buy, U.S. Treasury securities directly, visit www.
savingsbonds.gov and www.publicdebt.gov .
To learn about exchange-traded funds, visit the American Stock Exchange
( www.amex.com ) and Barclay’s iShares ( www.ishares.com ).

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