In the world of investing, fees can eat away at your returns faster than you can say "compound interest". That's why it's crucial to design a portfolio with lower fees in mind, and that's where the wealth architect comes in.
The wealth architect is a savvy investor who understands the importance of keeping fees low in order to maximize returns. By diligently researching and selecting investments with lower expense ratios, the wealth architect is able to build a portfolio that is not only cost effective but also more likely to outperform the market over the long term.
One of the key strategies employed by the wealth architect is to focus on index funds and exchange traded funds (ETFs) that have low expense ratios. These passively managed funds typically have lower fees than actively managed funds, which often come with higher costs due to the active management involved. By investing in index funds and ETFs, the wealth architect is able to keep fees to a minimum while still gaining exposure to a diversified range of assets.
Another tactic employed by the wealth architect is to avoid high cost investment products such as variable annuities and actively managed mutual funds. These products often come with hefty fees that can eat into returns over time, making them less attractive options for long term investors.
By diligently researching and selecting investments with lower fees, the wealth architect is able to design a portfolio that is not only more cost effective but also better positioned to generate strong returns over the long term. So if you're looking to build wealth and achieve your financial goals, take a page out of the wealth architect's playbook and start designing a portfolio with lower fees today. Your future self will thank you for it.