Today, we have access to so much information that it is difficult to figure out where to direct our time and attention.
It has been said that we live in the information age. However, a friend of mine corrected me. He stated that we now live in the recommendation age. With so much information available, it is difficult to determine what information is trustworthy.
There is a web-based tool you may find beneficial as you prepare for your retirement. The Financial Industry Regulatory Authority (known as FINRA) has developed a Fund Analyzer tool. This tool compares the expenses of mutual funds and exchange-traded funds, informing you how a particular fund’s expense ratio stacks up against an industry average of similar funds.
This is particularly important because one of the key investment ingredients you can control is cost. Historical evidence clearly demonstrates that a majority of investment managers fail to beat their benchmark returns. The few that do are unable to predictably repeat their success. The higher the internal management fees and expenses of an investment, the greater the difficulty in earning higher net returns for the investor. By keeping your investment costs low, you are able to keep more of your investment returns.
Please visit the FINRA website to access this beneficial information. I also recommend you visit the Jentner Wealth Management website to learn more about prudent investing using low-cost passively-engineered investments.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.
