January 6, 2014 Admin | January 6, 2014 Focus on getting the best return on investment AFTER costs. What costs should be reduced or eliminated?
2 thoughts on “January 6, 2014”
Fees should be reduced and commissions should be eliminated. Vanguard fits this criteria when it comes to investing; low fees and no commissions!
Yes indeed, Katherine. Let’s review.
To be a wise and efficient investor you MUST focus on your actual return AFTER costs. Most financial “helpers” such as financial advisors, brokers and life insurance agents would rather not have you think about that. They generally discuss return on investment BEFORE costs. That is a mistake!
So what do you do? Follow Katherine’s advice. Invest at Vanguard.com, which will eliminate commissions and dramatically reduce your fees when owning no-load index mutual funds.
Try to own index funds within retirement accounts to reduce the costs of taxes. This pertains to your retirement plan at work and a Roth IRA at Vanguard. There is no good reason why you should be paying more than .30% in yearly costs on your investments. I would prefer you to whittle that number down to .10% or less, which many people have done, as their accounts grew and are were converted to admiral shares ($10,000 or more in the account of an index fund). Take control!