In this episode of Your Business, Your Wealth, Paul and Cory continue their discussion on illusions of investing in the marketplace. In part four of this series, Paul and Cory talk about the importance of understanding fees and costs of your investments. Specifically, they focus on the illusion that mutual funds come without any hidden fees or costs to you as an investor. Paul speaks to transaction costs, cash drag, the bid-ask spread and turnover ratio, to name a few examples of fees that can impact your investments. Finally, Paul encourages the audience to independently investigate different mutual funds in the market to gain a better understanding of the real costs associated with these types of investments.
WHAT WAS COVERED
- 02:43 – Paul recaps the topics of the last three episodes on illusions in the marketplace
- 03:20 – Introducing today’s topic, Illusions of Investing Part 4: Do You Know Your Fees and Costs?
- 03:57 – Paul takes a look at an article by Forbes on the real cost of mutual funds
- 06:10 – Transaction cost, explained
- 07:56 – Paul provides an example of a time he pointed out hidden fees to a client who was unaware of these fees
- 10:02 – Cash drag
- 12:08 – The story of the two cousins
- 14:59 – Paul interrupts the podcast to provide the audience with a special offer
- 16:00 – The Bid-Ask Spread
- 18:13 – Turnover Ratio
- 19:36 – Paul quotes the great investment consultant, Charles Ellis
- 20:31 – Paul encourages the audience to investigate the turnover ratio of their mutual funds
- 21:01 – Paul teases the topic of next week’s episode
Sound Financial Group’s Website for a Financial Inquiry Call – Info@sfgwa.com (Inquiry in the subject)
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“Legends Are Made” Copyright 2017. Music, arrangement and lyrics by Sam Tinnesz, Savage Youth Music Publishing SESAC and Matt Bronleewe, UNSECRET Songs SESAC
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