1207 S. White Chapel Blvd. Suite 150
Southlake, TX 76092

P 817-416-7300

F 817-416-7307

Are You Asking the Right Questions About Investing?

In the article below, Peter hits the nail on the head with his point about cost. Many articles fiercely debate which is better: active management or passive management. Attempting to out-guess other portfolio managers (active management), these articles often promote index funds (a form of passive management) as superior to a higher-cost portfolio manager.

In contrast, I believe total cost has the biggest impact on long-term investment performance (both the cost you see, such as expense ratio, and the cost you don’t see, such as trading cost and bid-ask spreads). Index funds have gained popularity because they are a low-cost option. However, the hidden costs of trading are even more important to monitor, as they are typically three times more expensive than the cost you can see.

With just a recent statement, we can run Portfolio Scope™, our proprietary analysis that will provide insight into your portfolio’s cost and strategy, as well as our opinion on its risk-return characteristics.

Enjoy this well-written article on why you should ask about total cost when choosing an investment:


— Mike

Featured Material