Reexamining the 4th Key Rule of Successful Investing: Reduce Your Costs

One of the easiest ways to make more money in your portfolio is by not spending as much in fees, but the only way you can reduce these costs is by knowing what fees you are being charged.

You need to be aware of all the fees you’re paying, including the ones that are “hidden,” or not readily disclosed in a prospectus. These fees can be found in the Statement of Additional Information that is available to all investors, at no cost, upon request.

You should also know how your investment advisor is compensated—for example, does he earn a fee by selling you certain stocks?—and whether he is fulfilling a fiduciary duty to you or is working for the mutual fund or brokerage.