I have a confession to make. It’s not my fault as a recovering engineer, but I am mildly obsessed with efficiency. (Alright, my wife has suggested I drop the word “mildly.”) The point is, nothing makes my day more than finding a better tool to enhance efficient investing; conversely, nothing irks me more than an inefficiency left to fester. And excessive investment costs are among the most annoying inefficiencies of them all, given the damage they can do when left needlessly unchecked.
Lest you think I’m the only one worrying about costs, here are a few telling quotes from others:
“In investing, you get what you don’t pay for.”
– John C. Bogle, Founder, The Vanguard Group
“My advice to a prospective active do-it-yourself investor is to learn to golf. You’ll get a little exercise, some fresh air and time with your friends. Sure, green fees can be steep, but not as steep as the hit your portfolio will take if you become an active do-it-yourself investor.”
– Terrance Odean, Behavioral finance professor, University of California, Berkeley
“It is difficult to systematically beat the market. But it is not difficult to systematically throw money down a rat hole by generating commissions.”
– Michael Jensen, Professor emeritus, Harvard University
“The stockbroker services his clients in the same way that Bonnie and Clyde serviced banks.”
– William Bernstein, Former neurologist (yes, he’s wicked smart) and author of The Four Pillars of Investing
Have we got your attention? We’ll be back in touch after the holidays with some new year’s resolutions regarding the costs of investing.
For more information or to set up a consultation, contact Pathway Financial Planning at 248-567-2160 or email email@example.com.