1 thought on “Investment & Speculation

  1. J.J.
    Ritholtz’s Rules of Investor is why most of us subscribers appreciate ISA as a very informative news letter at a bargain price. Rule # 11 from the article above says it all for me. “11. Reduce investing friction. Friction refers to all of the little costs that, when compounded over time, can add up to big dollars. In investing, friction refers to anything that is a drag on total returns outside of market performance. Think about the long-term effects of the fees, costs, expenses and taxes on your net, above and beyond how your investments did.

    Since 1974, the markets have returned about 10 percent a year. The average 401(k) retirement account earned about 3 percent annually over that period. There are numerous reasons these portfolios radically underperformed the markets, but one of the primary reasons is the layers of excess fees and fund loads.

    Investors with lower costs tend to have better growth and retain more of their assets over the long haul. Keep your fees, costs expenses and taxes low. It is a guaranteed way to improve your returns.”
    Thanks for all the insight you provide each and every day.

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