Investing can be a daunting task, especially for beginners. With so many options available, it can be overwhelming to know where to start. However, there is a method that has been gaining popularity in recent years for its simplicity and effectiveness: the lean investing method.
The lean investing method is all about focusing on the essentials and cutting out the unnecessary fluff. By trimming down fees and expenses, investors can maximize their returns and build a more profitable portfolio. Here are some tips on how to implement the lean investing method in your own investment strategy:
1. Start by evaluating your current investment portfolio and identifying any high fee funds or unnecessary expenses. This could include actively managed mutual funds with high expense ratios or unnecessary trading fees. By cutting down on these fees, you can instantly increase your returns.
2. Consider investing in low cost index funds or exchange traded funds (ETFs) that track the performance of a specific market index. These funds typically have lower fees than actively managed funds and can provide broad diversification across different asset classes.
3. Keep an eye on your investment expenses and regularly review your portfolio to ensure that you are not paying more than necessary. By staying vigilant and actively managing your investment costs, you can keep more of your returns in your pocket.
4. Focus on long term investing and avoid unnecessary trading. By holding onto your investments for the long term, you can minimize trading fees and take advantage of compounding returns over time.
5. Consider working with a fee only financial advisor who can help you build a lean investment strategy tailored to your financial goals and risk tolerance. A fee only advisor does not earn commissions on the products they recommend, so you can trust that their advice is in your best interest.
By following the lean investing method and focusing on trimming down fees and expenses, you can build a more profitable investment portfolio and increase your overall returns. Remember, investing is a long term game, so stay disciplined and stick to your strategy. Happy investing!