In the world of investing, there is no shortage of noise and distractions that can make it difficult to stay focused on your financial goals. From the constant barrage of market news and opinions to the latest trends and fads in the investment world, it can be easy to get caught up in the hype and lose sight of what really matters.
For the investment purist, however, cutting through the noise and simplifying your strategy is key to achieving long term success. One of the most effective ways to do this is by reducing fees. While fees may seem like a small detail, they can have a significant impact on your overall investment returns over time.
When you invest in mutual funds, exchange traded funds (ETFs), or other investment vehicles, you typically pay fees to the fund manager for their services. These fees can vary widely, but even seemingly small differences can add up over time and eat into your returns.
By focusing on low cost investment options, such as index funds or ETFs with low expense ratios, you can significantly reduce the impact of fees on your portfolio. This allows you to keep more of your investment returns for yourself and can help to boost your overall performance over the long term.
In addition to choosing low cost investment options, the investment purist also pays close attention to the fees associated with their brokerage account. Some brokers charge higher fees for trades, account maintenance, and other services, which can also eat into your returns. By shopping around for a broker with competitive fees and avoiding unnecessary charges, you can further reduce the impact of fees on your investment returns.
Ultimately, by cutting through the noise and simplifying your investment strategy through a focus on low fees, the investment purist can set themselves up for long term success. By keeping costs low and staying disciplined in their approach, they can achieve their financial goals and build a solid foundation for the future. So, the next time you're tempted to make a flashy investment or follow the latest trend, remember the importance of reducing fees and staying true to your purist investment principles. Your future self will thank you for it.