The Importance Of Management Fees In Investing

The Importance Of Management Fees In Investing by Ben Reynolds, Sure Dividend

The biggest mistake I see people make is paying too much for investment products and services.  Most investing professionals do not spend nearly enough time discussing fees.  After all, it is how they make their money.  Simply put, the more you pay for your investments, the less money you have invested to compound.

An investment advisor typically charges 1% for their services.  This doesn't sound like much, but considering that the after-inflation compound total return of the S&P 500 is about 7% over the last 50 years, your investment advisor is getting about 14% of your profits.  This is a huge difference over time.

It gets worse, unfortunately. ...