In the world of investing, there are many different strategies that individuals can employ to try and grow their wealth. Some people prefer to take a hands on approach, carefully selecting individual stocks and closely monitoring their portfolio. Others may opt for a more passive approach, investing in index funds or ETFs to achieve broad market exposure.
Regardless of the strategy you choose, one thing that all investors should pay close attention to is fees. Fees can eat away at your returns over time, so it's important to try and minimize them as much as possible. This is especially true for those who consider themselves to be investment purists – individuals who are dedicated to sticking to a disciplined investment strategy and are focused on maximizing their returns.
One way that investment purists can simplify their strategy and reduce fees is by opting for low cost index funds or ETFs. These funds typically have lower expense ratios compared to actively managed funds, which means that more of your money stays invested and working for you. Additionally, index funds offer broad market exposure, helping to diversify your portfolio and reduce risk.
Another way to reduce fees without sacrificing service is by working with a fee only financial advisor. Fee only advisors are compensated solely by their clients, rather than earning commissions on the products they recommend. This can help to eliminate any conflicts of interest and ensure that your advisor is working in your best interests.
By simplifying your investment strategy and reducing fees, you can help to improve your overall investment performance and reach your financial goals more quickly. Whether you prefer a hands on approach or a more passive strategy, keeping fees in mind can help you to maximize your returns over time. So, if you consider yourself to be an investment purist, take the time to review your portfolio and see where you can make changes to reduce fees and improve your investment results.