These Fees Make a Difference

As you contemplate your financial future, there are several things to keep in mind.

Money & Credit

These Fees Make a Difference

Investment decisions are certainly a personal matter. But there are some key components to get you off to a good start. Just like Baskin-Robbins has 31 flavors of ice cream, financial companies also offer a wide array of ways to invest - some which are more cost effective and have lower fees than others.

Over the years, I've tried multiple strategies to enhance my investment returns. I attempted market timing, trading specific stocks which had "hot products," and I'll certainly never forget my "wagers" on penny stocks.

Chasing returns was never particularly successful for me. Some time ago, I adopted the "KISS" (keep it simple, Sherlock) principle. While still considering asset allocation relative to my percentage of stocks, bonds, cash and market sectors, I now avoid emotional investing, particularly as I am often unable to explain (much less control) the rise and fall of stock prices.

I now purchase a few indexed funds that provide great diversity in various market sectors. Best of all, the costs/fees associated with them is minimal. Fees on some investments can vary significantly over time and can greatly alter your total return.

On a monthly basis, I invest in each of these categories since they are part of my retirement account. With the power of compounding and the ability of these funds to grow in a tax-deferred setting until retirement and redemption, they should add up to a "pretty penny."

As you contemplate your financial future, keep these things in mind:

  • Start early
  • Save regularly in a tax-deferred vehicle
  • Utilize low-cost funds

Last, but not least, find a good financial advisor who can help you make the most of your hard-earned dollars.

The information in the NCMIC Learning Center is offered solely for general information and educational purposes. It is not offered as, nor does it represent, legal or professional advice. Neither does this information constitute a guideline, practice parameter or standard of care. You should not act or rely upon this information without seeking the advice of an attorney familiar with the specific legal requirements of the state(s) in which you practice. If there is a discrepancy between the site and an insurance policy you have with NCMIC, the policy will prevail.