In the world of investing, fees can often be a major roadblock to achieving your financial goals. Whether you are a seasoned investor or just starting out, the impact of fees on your overall returns cannot be understated. That's why many investment purists advocate for a strategy that focuses on reducing fees in order to maximize returns.
One key principle of the investment purist is to keep things simple. This means avoiding complex investment products that come with high fees attached. Instead, they opt for low cost, passively managed index funds that track the performance of a specific market index. By doing this, they are able to eliminate the need for expensive fund managers and reduce the impact of fees on their returns.
Another strategy that investment purists use to reduce fees is to avoid unnecessary trading. Constantly buying and selling stocks or other investments can rack up fees in the form of trading commissions and capital gains taxes. Instead, they take a long term approach to investing, focusing on building a diversified portfolio and holding onto their investments for the long haul.
Additionally, investment purists are diligent about researching and comparing fees across different investment options. They understand that even seemingly small differences in fees can add up over time and eat into their returns. By carefully selecting investments with low fees, they are able to keep more of their hard earned money working for them in the markets.
In conclusion, the investment purist's approach to reducing fees is not about cutting corners or taking unnecessary risks. It is about being strategic and intentional with their investments in order to maximize returns over the long term. By simplifying their strategy and focusing on minimizing fees, they are able to create a more efficient and effective investment plan that aligns with their financial goals.