Minimizing Costs
Hidden Costs Visible Costs

 

The cost of investing is one of the greatest factors to negatively effect returns. Many advisors will say that the costs of investing are irrelevant so long as the returns are above average. The challenge with this statement is that achieving returns above the market is more a factor of luck than skill, and costs obviously play a role in skewing that luck. One would think that with just random luck, professional managers would outperform the market more often than 50 % of the time. Unfortunately, that is not the case. In fact, professional managers even perform worse than random luck largely due to the costs associated with providing returns. The truth is that in any given year a mere 25-35% of professionals beat the market.

Many of the costs associated with investing are apparent to investors, however, other costs are not apparent. In fact, many investment professionals are even unaware of these hidden costs that diminish investment returns. Now you can learn what these hidden costs are that even many pros don't know!