Broker Check
22 - Investing Controllables Part 5 - Use Low Cost Investments

22 - Investing Controllables Part 5 - Use Low Cost Investments

March 31, 2023
Who May Benefit? Everyone
What Is It? Selecting investment solutions that have lower expenses than their category averages.
Why Is This Valuable? Every dollar paid for fund expenses, trading costs, and taxes is a dollar less that is working for you. High fees can significantly impact your long-term returns, making it essential to minimize costs.
How Do I Do This? Compare expense ratios of the funds you are considering. Lower-cost investments often include passive funds such as index funds and ETFs, which seek to replicate the performance of a particular market index. Some asset classes may be more expensive than others. The goal is to keep costs low AND maintain your asset allocation.
Note: Remember to consider other factors, such as fund performance, investment strategy, and management team, alongside the fees, to make well-informed decisions. Lower expenses and good past performance do not guarantee better results.