WILL lower fees make you feel better about lower returns?

The jury may be out on the concept of active vs. passive management, but we can all agree on something…the higher your net return, the more money you make. Pretty sure that thought holds true.

With a plethora of ETFs and low-fee investment vehicles becoming extremely popular in the market, it seems like in today’s investing era we talk more about transparency over fees than actively hitting return goals.

I’m not implying that fees aren’t important, but I’d gladly pay a 2.5% fee for a return of 10% than pay 0.5% for a return of 5%. The danger in evaluating your investments returns on the fee someone or some institution earns is just too simple, so much like evaluating a company based on their sales and net income, make sure when evaluating your investments, returns stay top of mind.

Think about using Turbo Tax vs. A Tax Accountant…sure, paying $20 is better than $1,000, but if the fee justifies real tax savings through a lower payable or higher refund, it’s well worth the investment. I personally use Turbo Tax, but maybe should have just hired an accountant instead of paying tuition to get my Accounting Degree…

For more perspective or speaking engagement opportunities, contact adam@singersteinberg.com