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How Mutual Funds and ETFs Build Wealth

Building Wealth with Mutual Funds and ETFs

Want to grow your wealth for financial security and your retirement? Here’s why mutual funds and ETFs should be the keystone to your investment plan. Add them to your portfolio and eliminate credit card debt from your portfolio. For help specifically with paying off credit card debt, get the free 7-Step Credit Card Debt Slasher.

What are mutual funds and ETFs?

There’s a lot of what we call ‘investing success porn’ out there. Stories of a bro who picked a hot stock and made millions overnight. But those stories are rare. And it’s just as easy to lose big by putting all your money in a few individual stocks.

So, what if you weren’t under any pressure to pick the perfect stock? What if there was a much less risky way to make the right investment choice? Truth be told, 8 out of 10 millionaires in the US grew their wealth over time by investing in mutual funds and ETFs through their 401(k)s.

On this episode of Queer Money, we explain what it means to invest in mutual funds, describing how these baskets of investments are traded and why they come with certain operating expenses and tax risks. We differentiate ETFs from mutual funds, discussing why exchange traded funds have lower fees and challenging to you find an ETF that aligns with your personal objectives. Listen in to understand how we crossed the millionaire mark by investing in our 401(k)s and find out how YOU can take advantage of an employer-sponsored retirement account to build wealth with mutual funds and ETFs.

Listen to understand mutual funds and ETFs

Topics Covered

  • What it means to invest in mutual funds rather than individual stocks
  • An overview of the different types of mutual funds (e.g.: objective-driven, index funds, etc.)
  • The operating expenses and tax risks associated with investing in mutual funds
  • How investing in just a few mutual funds offers a diversified portfolio
  • What differentiates investing in ETFs from mutual funds
  • How to find an exchange traded fund that aligns with your personal objectives
  • The risks associated with investing in certain kinds of ETFs
  • Why ETFs typically have lower fees and fewer regulations than mutual funds
  • How most millionaires in the US built wealth by investing in their 401(k)s
  • Why you should be using your employer-sponsored retirement account


Resources from this episode:


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We’re David and John Auten-Schneider, the Debt Free Guys ( and hosts of the Queer Money® podcast. We help queer people (and allies) live fabulously not fabulously broke by helping them 1) pay off credit card debt, 2) become part- or full-time entrepreneurs and 3) save and invest for retirement.

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