Principles of Sound Investing - Cost Considerations for Your Investments Savings and Investments in Your Financial Plan Investment Basics Balancing Risk and Return Cost Considerations for Your Investments Measuring Performance Cost Considerations for Your Investments Though often overlooked, the costs of making any type of investment are no small matter.
High expenses can significantly cut into investment returns over the long run.
There are all sorts of costs associated with investing. Over the short term, brokerage fees from frequent buying and selling of individual securities can undercut investment returns. If you're investing through a mutual fund or annuity, there are a host of potential additional fees to consider. Perhaps the most far-reaching costs are taxes. We've already discussed a variety of tax-deferred investment vehicles that encourage savings for retirement.