Investing Rule #1 – Get the Parasites Off Your Portfolio!

By Jim Luckett, Ph.D., Economics

It amazes me that people will clip coupons to save 35 cents on a roll of toilet paper and then waste hundreds or even thousands of dollars on fees and commissions when they invest.  Why?  Could be:

(a) they don’t see these costs, and/or
(b) they believe the myth that you get what you pay for (not true in investing) and/or
(c) they see the fee but since it’s expressed as a tiny percentage like 1.5% they think it’s trivial.

Look for the fees: Before you buy a mutual fund, for example, find out the “load” and the annual operating expense.   These have tobe prominently disclosed.   The load is a sales charge.   It should be zero (see next paragraph), but often it is not.   The load may take a slice of your money going into the fund, or a slice when you

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