No individual can avoid paying fees for investing in securities. The basic costs of investing are:

  1. brokerage fees
  2. taxes

High costs of participation will erode investment returns. Potentially high costs include:

  1. middle manager’s fees (e.g., fund managers, investment advisers)
  2. subscriptions (e.g., memberships, tool kits)

Tips for minimizing costs

  1. use a discount brokerage firm that provides accounting services (e.g., cost basis, tax reports)
  2. enroll in tax-deferred, retirement savings plans
  3. avoid middle managers.  do your own research by starting in the library and using search engines.
  4. invest in index funds designed to capture the market’s returns
  5. choose your membership subscription wisely (review the benefits; seek ratings and recommendations, etc.)  use trial subscripts first.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: