Pay Attention to Fees, Keep Them Low

The great investor Warren Buffet won a famous bet against a Hedge Fund manager that over a ten year period he would have better returns using low cost mutual funds versus a basket of higher cost hedge funds. The founder of Vanguard, Jack Bogel, built one of the most successful companies, ever, on the idea that investment fees were excessive and unnecessary. Therefore, you should pay attention to the fees of whatever product you are looking to put your hard earned money towards.

Over time, fees do add up. The money that would have gone into the investment can equal tens of thousands of dollars over a 30-40 year period. I’ve transitioned to almost all new investment money to self managed low fee/cost funds over the years as I’ve become more educated and confident in my ability to handle my money. I’m especially careful to watch the fees in my 401K as the higher fee options are simply not worth it. I definitely want all that money working for me as long as possible.

All that said, I didn’t start out managing my own investments. I started with an invest advisor and still have a good portion of my portfolio there. I don’t regret it at all and have used that person to educate me on options over the years. They helped me at a time when I certainly needed the help. I don’t begrudge them the fees/money that was paid to them. However, over the long-term it has been significant and I’m much more aware of it now hence I try to do all new investments on my own using low cost products.

So, overall, educate yourself and look for the low cost option unless you determine that the higher cost is worth the money. It may be at times, but make it your decision. Don’t pay for things that just aren’t necessary.

On another note, if you are looking for a gift for the young reader in your life, you can find some great children’s books on Amazon. Just go to these links The Desert Fairies of Oylara, The Rainforest Fairies of Oylara, and The Artic Fairies of Oylara and order them.

Finally, check out some pretty cool music on YouTube if you have a few minutes: Introduction , Mosh, Smoke, and Watch Out . Enjoy!