These expressions come after I explain that there may be tax on their mutual fund withdrawals. That can't be.
Mutual funds are an excellent way for the average person to invest their money.
However, many individuals do not quite understand how mutual funds work. At least initially, most investors believe that a mutual fund is similar to a savings account that earns interest. With a simple savings account, the bank reports to you and the IRS the amount of interest earned on the account at the end of the year, and in turn you report the interest on your tax return and pay the tax. When you withdraw money from the account, it does not cause a taxable event. Mutual funds are not quite that simple.