Last week, we began a new series on the fiduciary-conflict of interest Rule, what it is and how retirement investors are affected.
Today, I will show how high fees and expenses affect your investment portfolio. Since no one can predict performance, the only thing for certain are costs.
Here’s a fact: Funds with high cost must perform better than low-cost funds to generate the same returns. “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients.” Warren Buffett said in his recent letter (page 23) to Berkshire Hathaway shareholders.