Keep costs low to maximize returns from "summary" of The Investment Answer by Gordon Murray,Daniel C. Goldie,Gordon S. Murray
The importance of keeping costs low cannot be overstated when it comes to investing. Consider this: if you have two investment options that offer the same return, but one has higher fees, which one would you choose? The answer seems obvious - the one with lower fees. Costs can eat into your returns over time, reducing the amount of money you have available for future investments. This is why it is crucial to be mindful of expenses and choose investments with low fees whenever possible. By minimizing costs, you are essentially maximizing your returns. This means you can keep more of your hard-earned money working for you in the market, rather than paying it out in fees. One common mistake that investors make is focusing solely on the potential returns of an investment, without taking into account the impact of fees. It is important to consider both aspects when making investment decisions. Remember, every dollar saved on fees is a dollar that can continue to grow over time through the power of compounding. So, take the time to research and compare fees before making any investment decisions. Your future self will thank you for it.
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