There are fees associated
with all forms of investments. The message
today is to try not to solely focus on fees.
Here’s an interesting experiment I did with a client.
Suppose you could invest
in FUND A that charges a .35% management fee.
Or you could invest in
FUND B that charges a 1.41% management fee.
Which would you select?
Chances are you, like
most, would choose the fees with the least cost, FUND A. But let’s add an
additional criteria.
Let’s say FUND A has
averaged 33.6% per year over the past FIVE YEARS.
While FUND B has averaged
37.2% per year over the same time period.
Also remember that both funds are in the same fund objective, HEALTH
sector.
Now which fund would you
choose?
Chances are you’d select
the FUND B that has given you better performance by a substantial 4%.
My point is this. Yes, you must consider the investments’
fees. But lower do not always
mean better performance. All I am
saying is to consider ALL data when selecting an investment to help build your Business Succession.