DOES IT COST A LOT TO SWITCH FUNDS?
No, it doesn’t. In fact, with an account at one of the better fund supermarkets (like Scottrade, TD Waterhouse, or Fidelity), Upgrading is a fairly low-cost way to invest. Certainly it’s not as cheap as some strategies, like indexing. But because so many of SMI’s recommended funds are offered on an NTF (no transaction fee) basis, most of our fund switches cost you nothing. Upgraders pay normal trading commissions on the funds labeled “Yes” on SMI’s Recommended Funds page , and pay early-exit penalties occasionally when they sell an NTF fund they’ve held less than 3-6 months (varies by brokerage). But because our average holding period is roughly 9 months, these penalties are infrequent.
No, it doesn’t. In fact, with an account at one of the better fund supermarkets (such as Firstrade, TD Ameritrade, Fidelity or Schwab), Upgrading is a fairly low-cost way to invest. Certainly it’s not as cheap as some strategies, like indexing. But because so many of SMI’s recommended funds are offered on an NTF (no transaction fee) basis, most of our fund switches cost you nothing. Upgraders pay normal trading commissions on the funds labeled “Yes” on SMI’s Recommended Funds page , and pay early-exit penalties occasionally when they sell an NTF fund they’ve held less than 3-6 months (varies by brokerage). But because our average holding period is roughly 9 months, these penalties are infrequent.
