Free From Broke

A Personal Finance Blog for Regular Folks

Glen Craig

What is a Mutual Fund Prospectus?

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Mutual funds can appear about as logical as jumbo shrimp to the millions of people who have 401(k)’s, IRAs, and other investments that include these funds.

If you’re like many investors, you only have a vague idea how these funds work.  Although there is a lot to evaluate when you’re choosing the funds that will fill your retirement or other portfolio, let’s concentrate on the very first step – What is a Mutual Fund Prospectus?

When you first started the process of setting up your retirement fund, you may have received a series of brochures that had a whole lot of words but very few of them made any sense.

These brochures are called prospectuses and we’re going to learn the basics that you need to know to make informed choices. [Read more…] about What is a Mutual Fund Prospectus?

Why Invest in Mutual Funds and What They Are

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The majority of investment activities is carried out by institutional investors, including mutual funds.

They buy and sell large quantities of shares and get preferential treatment on trade commissions.  Although everyone can try investing for him or herself, investment is a profession and requires professional knowledge and expertise, as well as resources.

With a certain degree of share concentration, some mutual funds may even seek board seats of their portfolio companies and try to exert a more active role in corporate governance.  As a result, funds can have more control over their investments and that often leads to better investment performance.
[Read more…] about Why Invest in Mutual Funds and What They Are

What Are Consumer Driven Health Plans and How do They Work for You?

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Consumer Driven Health Plans have become popular as a way to contain health care costs.

But what are consumer driven health plans and how do they work for you?

While a consumer driven health plan can substantially lower health costs to an employer, they can also result in substantial savings — and other benefits — to employees.

The plans center on health savings accounts (HSAs) and health reimbursement accounts (HRAs), and pay for up front health care costs not generally covered by regular health insurance plans.

They are typically (but not always) used in conjunction with high deductible health insurance plans that protect the beneficiary only from very large medical expenses.

The difference is then covered through either the HSA or HRA account.  This enables the employee to pay lower health insurance premiums but to budget for the higher out of pocket costs through regular contributions to HAS/HRA accounts by either the employee or employer.

The combination is named “consumer driven health care” because up-front health care costs are paid using a consumer-controlled account versus a single payer, giving the beneficiary greater control over his own health coverage. [Read more…] about What Are Consumer Driven Health Plans and How do They Work for You?

Get Your Credit Score…For Free

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You know you need to have a great credit score.  But how can you get your credit score for free?

Having a good credit score will open all sorts of financial doors for you.  It’s fairly well-known that your credit score means a lot when you are applying for loans.  If you want to get approved for a loan, you need a good score.  If you want the best interest rates, you need a great score.

Having a good credit score will save you a ton in interest charges.

You can save hundreds, or even thousands, over the life of your loan.  Whether you are applying for a mortgage, an auto loan, or a credit card, good credit is essential if you want to be approved on the best terms.

You should also realize that your credit score can be used for other purposes as well.
[Read more…] about Get Your Credit Score…For Free

Our Switch To Netflix – Review

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A few years ago my wife complained about our cable bill.

“This is a ridiculous amount to pay every month” she said.

We had a premium cable channel on our plan but we weren’t even watching most of the movies or shows it provided.  And the movies it did show played over and over without much variety.

I thought about it and it was ridiculous.

So what to do?

We wanted to be able to watch recent movies without having to pay per movie or leave the house to pick something up. 

Enter Netflix!
[Read more…] about Our Switch To Netflix – Review