Unveiling Indexing for Financial Innovation: In recent years, one of the most remarkable financial innovations has emerged – indexing. This breakthrough allows everyday individuals to hold a stake in the market at a fraction of the cost associated with actively managed funds. However, within this innovative approach, a crucial aspect demands attention: the fees.
Indexing is one of the best financial innovations that have happened in recent years. It allows regular people to own the market for a fraction of the cost of actively managed funds. However, there are some drawbacks to indexing, and one of the most important is the fees.
Index funds have expense ratios, which are the fees that you pay to the fund manager for managing your money. Expense ratios can vary widely, from as low as 0.03% to as high as 2% or more. When you're investing for the long term, even small differences in expense ratios can add up to a lot of money.
That's why it's important to do your research and choose index funds with low expense ratios. If your advisor has put you in an expensive index fund, you should fire them immediately.
In the latest episode of Tech Careers and Money Talk, John Morrison, a financial advisor who specializes in working with tech professionals, shares his insights on indexing and how to choose index funds with low expense ratios.
Click here to listen to the episode now: https://www.techcareersandmoneytalk.com/015-the-future-of-retail-wealth-management-a-conversation-with-john-morrison
What are your thoughts on indexing? Are you invested in any index funds? Share your thoughts in the comments below.
