In the world of investing, fees can eat away at your returns faster than you can say "bull market." That's why many investors are turning to the lean investing method, which focuses on trimming down fees and maximizing returns through customization.
So, what exactly is the lean investing method, and how can you put it into practice? Let's break it down.
First and foremost, the lean investing method involves taking a close look at the fees you are paying on your investments. This includes management fees, expense ratios, and any other costs associated with your investment portfolio. By identifying where you are paying the most in fees, you can begin to strategize on how to reduce them.
One way to trim down fees is through customization. This involves tailoring your investment portfolio to your specific financial goals and risk tolerance, rather than relying on one size fits all investment products. By building a customized portfolio, you can eliminate unnecessary fees and potentially increase your returns.
Another way to trim down fees is by investing in low cost index funds and exchange traded funds (ETFs). These investment vehicles typically have lower fees than actively managed funds, allowing you to keep more of your hard earned money working for you.
Additionally, consider working with a fee only financial advisor who can help you navigate the complex world of investing without being swayed by commission based incentives. A fee only advisor is incentivized to help you grow your wealth, rather than simply selling you investment products that may not be in your best interest.
Ultimately, the lean investing method is about being proactive in managing your investment portfolio and seeking out ways to reduce fees and increase returns. By customizing your portfolio, investing in low cost funds, and working with a fee only advisor, you can take control of your financial future and set yourself up for long term success.
So, if you're looking to trim down fees and fatten up returns, consider implementing the lean investing method into your investment strategy. Your wallet will thank you in the long run.