Just read last week’s Robert Kiyosaki article on Yahoo entitled
Playing the Mutual Fund Lottery.

I cant believe Yahoo keeps him on. This article is dangerous information to spread to the uneducated. Seems to be saying mutual funds are no better than playing the lottery because of the high cost of some funds. I’m not sure what else one could take from the article.

Folks, there are extremely low-cost index funds and ETFs that one could choose that entirely invalidates any point he appears to be making here. The Vanguard Total Stock Market ETF (Ticker: VTI) has an annual cost of 0.07%. That is ridiculously low. In fact, there is a good Jeremy Siegel article on Yahoo yesterday, The Bullish Case for Stocks, that points out that reduced transaction costs that began with deregulation 30 years ago have made the stock market more liquid and fairly priced. Back then, it was not unusual to have to overcome an annual cost of 2% due to the aggregate effect or high spreads and brokerage costs. That was a pretty large leak that no longer needs to be paid if one sticks to no-load index funds and broad market index ETFs.