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The ETF Advantage
Baumgarten highlighted onemajor advantage of ETFsover mutual funds.
Theres some partitioning in the mechanics that creates tax advantages for ETF investors that mutual funds dont possess.
Essentially, ETFs help investors defer capital gains taxes, boosting compound interest growth potential.
While mutual funds often charge extra fees for frequent trading, Baumgarten noted that ETFs generally avoid this.
That is a fools game.
Youre much better off owning a broad-market ETF with exposure across all market sectors.
Getting Started
For thosenew to investing, Baumgarten recommended starting simply.
You just have to know what to ask for.
These funds offer broad market exposure at minimal costs, providing a pure form of participation.
Baumgarten himself personally holds millions of dollars in these funds alongside his clients portfolios.
Instead, he emphasized the historicalreliability of long-term investing.
The stock market goes up in 81% of all time periods over 12 months.
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