Given that many experts are cautioning investors to expect slower growth and thus lower returns than in decades past, focusing on low-cost investments is more important than ever. If you aren’t vigilant on the cost of your mutual funds and ETFs, those costs accumulate over time eroding your return over the lifetime of your portfolio. When it comes to investing fees, if you watch your pennies, the dollars really will take are of themselves!
Saving for retirement is daunting. And small mistakes like paying too much in expenses on your mutual funds or ETFs have a way of compounding over time and costing a significant chunk of your nest egg in the long-run.
To use a baseball analogy, it’s tempting to try to win by hitting home runs. However, when building and managing your retirement nest egg, hitting singles and doubles is the safer, lower risk route. It's the singles and doubles that win the game. Focusing on the basics such as proper asset allocation, rebalancing, keeping expenses low, tax management and not making dumb moves have been proven to provide better returns over time.
Concerned about the fees and expenses you are paying for your investments? Want to make sure you have the right allocation for your goals and risk tolerance? Sounds like you are ready for a Portfolio check in. Click here to set up a time to chat.
Investing involves substantial risk and has the potential for partial or complete loss of funds invested. Investments mentioned may not be suitable for all investors. Before investing in any investment product, potential investors should consult their financial advisor, tax advisor, accountant, or attorney with regard to their specific situation.
