PODCAST EPISODE 166: DO YOU KNOW YOUR FEES AND COSTS?: ILLUSIONS OF INVESTING, PART 4

EPISODE SUMMARY

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

TWEETABLES

LINKS

Sound Financial Group’s Website for a Financial Inquiry Call – Info@sfgwa.com (Inquiry in the subject)

Your Business Your Wealth on Instagram

Your Business Your Wealth on Facebook

Sound Financial Group on LinkedIn

Paul Adams on LinkedIn

Cory Shepherd on LinkedIn

Cape Not Required (Cory’s Book)

Sound Financial Advice (Paul’s Book)

Clockwork: Design Your Business to Run Itself

Mike Michalowicz’s Book – Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Unconventional Success BookUnconventional Success: A Fundamental Approach to Personal Investment

Forbes Article on The Real Cost of Owning a Mutual Fund

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MUSIC CREDITS

“Legends Are Made” Copyright 2017. Music, arrangement and lyrics by Sam Tinnesz, Savage Youth Music Publishing SESAC and Matt Bronleewe, UNSECRET Songs SESAC

PRODUCTION CREDITS

Podcast production and marketing by FullCast

Recorded using Switcher Studio: sales@switcherstudio.com