Small Trades Journal

Every individual must pay fees to invest in securities. The inescapable fees are:

1. Brokerage fees
2. Taxes

Additional fees can erode investment returns. They are:

1. Middle managers’ fees (e.g., fund managers, investment advisers)
2. Subscriptions (e.g., journals, non-profit investment groups, tool kits, data bases)

Tips for minimizing costs:

1. Discount brokerage firms charge lower trading fees than full service firms.  The discount firm should provide tax information such as cost basis and annual tax reports.
2. Reduce taxes by opening tax-deferred retirement savings accounts
3. Passively managed funds typically charge lower fees than actively managed funds
4. Avoid investment advisors by doing your own research. Start at the library and use search engines.
5. Choose your subscriptions wisely. Use a free-trial first. Seek ratings and recommendations.

This entry was posted on Sunday, August 3rd, 2014 at 12:04 pm and is filed under do-it-yourself investing, exchange-traded fund (ETF), Personal finance, Young investors. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.