Investment Costs

Those paying any attention to giants in the investment management field in 2012 are aware of the constant admonition to pay attention to investment costs.  Bogle, Ellis, Bernstein, Buffett - the list goes on and on.  These giants in the field have studied the impact of excessive costs over long periods of time on the bottom line returns of investors.  The impact can amount to several years of retirement spending.

This has also been hammered home on numerous occassions here.  In fact, it is one of the key reasons for going the low-cost, indexed fund approach.  Whether you do your own investing, choose funds from a list of 401(k) offerings, or hire an investment manager, paying explicit attention to investment management costs is important.

It is fitting, therefore, to end 2012 with an interview video from WealthTrack "Controlling Investment Costs" found at Biz of Life.  The video features Charles Ellis and Mark Cortazzo.



My position is that many investors can minimize costs by doing the investing themselves.  Alternatively, today they can find low-cost advisors.

This is not to say that the area of personal finance should be completely low cost.  Depending on your situation, you may want to pay up for a really good financial plan and/or an estate attorney.  Paying up in these areas can definitely be worth it.  In fact, a good financial plan sometimes pays for itself.  But these are areas to be expounded on in 2013.

I hope 2012 has been prosperous for you and your family and 2013 is as well.

HAPPY NEW YEAR!!!!!!!!