When investing in Bonds, it is important to understand what kind of account is being utilized in purchasing Bonds.
Accounts that are managed by a professional manager assess an annual fee, usually represented as a percent of assets under management. This is important to you as bonds require little or no management. As such, it doesn't make sense to be continually paying a management fee for something that requires little attention.
Request that any individual bond investments be conducted on a commission basis that should cost less than one percent of the total investment. If Bonds are being purchased that are in a Bond Fund, then the fund is also assessing fees. If your portfolio includes a Bond Fund, you would probably be best served by contacting a Mutual Fund Company and opening a Bond Account directly with the Mutual Fund Company and thus minimizing the fees paid.
Copyright 2004, Frank Jersey
Mr. Jersey has over thirty years experience in the Financial Services Industry. For more information and opportunities, visit
http://www.someonesgottadoit.com
