If we’ve said it once, we've said it a hundred times - costs matter! To echo the words of the legendary John Bogle (or “St. Jack” as we like to call him), “In investing, you get what you don’t pay for.” While many advisors pay lip service to this idea and (to their credit) avoid high-cost investment options, they seem to conveniently forget that their own fees are just as much of a detriment to their clients’ well-being.
As we close out the surprise-laden year of 2016 (think Trump, Brexit, and the Cubs), now is a good time to think about how to improve your financial situation for the coming year and beyond. For us at Clarity, the first thing that comes to mind is keeping investing costs under control, which is especially important in this era of low interest rates and high equity valuations. Unfortunately, many investors still fall victim to the scam of high-cost active management, but the trend toward lower-cost passively managed funds continues unabated.