In the world of investing, building a resilient portfolio is crucial for long term financial success. One key factor in achieving this is by lowering fees associated with your investments. By reducing fees, you can keep more of your hard earned money working for you and ultimately increase your overall returns.
One way to lower fees is by choosing low cost index funds or exchange traded funds (ETFs) over actively managed mutual funds. These passive investment options track a specific index, such as the S&P 500, and typically have lower expense ratios compared to actively managed funds. Over time, these lower fees can have a significant impact on your portfolio's performance.
Another way to lower fees is by being mindful of transaction costs. Buying and selling investments frequently can eat into your returns through trading fees and commissions. Instead, consider a buy and hold strategy where you hold onto your investments for the long term and only make adjustments when necessary.
Additionally, consider working with a fee only financial advisor who has a fiduciary duty to act in your best interests. By avoiding advisors who earn commissions based on the products they sell, you can ensure that your advisor is focused on helping you achieve your financial goals without any conflicts of interest.
Persistence is key when it comes to building a resilient portfolio with lower fees. It may take time and effort to research low cost investment options and find the right financial advisor, but the long term benefits are well worth it. By staying committed to your financial goals and making smart choices along the way, you can set yourself up for success and achieve true financial fortitude.