In the world of investing, there are many different strategies and approaches that people take in order to secure a brighter future for themselves and their loved ones. Some investors prefer to take a hands on approach, carefully selecting individual stocks and monitoring their performance on a daily basis. Others may prefer to take a more passive approach, investing in index funds or exchange traded funds (ETFs) that track the performance of a particular market index.
But one thing that all investors can agree on is the importance of minimizing fees in order to maximize returns. After all, every dollar that you pay in fees is a dollar that is not working for you in the market. That's why the investment purist understands the importance of simplifying their strategy in order to reduce fees and increase their chances of success.
One way that the investment purist can reduce fees is by opting for low cost index funds or ETFs instead of actively managed funds. Actively managed funds typically come with higher fees, as they require a team of professional managers to constantly research and make decisions about which stocks to buy and sell. In contrast, index funds simply track the performance of a particular market index, such as the S&P 500, and therefore require less management and expertise, resulting in lower fees for investors.
Another way that the investment purist can reduce fees is by minimizing trading activity in their portfolio. Every time you buy or sell a stock or fund, you incur transaction costs, which can quickly add up over time. By taking a long term approach to investing and focusing on buying and holding quality investments, the investment purist can minimize trading activity and reduce fees in the process.
Ultimately, the investment purist understands that by simplifying their strategy and reducing fees, they can increase their chances of achieving their financial goals and securing a brighter future for themselves and their loved ones. By focusing on low cost index funds, minimizing trading activity, and taking a long term approach to investing, the investment purist can set themselves up for success in the market.