YOUTUBE
These two ways are a lot more boring.
Lowering your fees, like management , expenses and taxes
Investing more money, your money, dividend and more
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Lowering Your Fees
I remmeber talking to my grandpa and asking him, how much money he had in his portfolio
And at the time after investing for years
He had about $40-50k and he said the companies were charging him about 1-2%
And he said this all with a bright smile on his face
And in my heart all I felt was fear
Here he was about to retire soon with enough money for maybe 2 good years
And had been robbed for decades from these management companies asking him for management fees whether he made money or didn’t make money
And he was super ignorant about his investment, all he knew that it was 403b plan
Here is what I want you to do:
Send an email to your stock managemnt company
Ask for these 3 things
One: Cumulative Return on investment NET fees
Two: Compared to a Simple Index like the s&p 500
Three: itemized Report of all fees and charges made to you
Here is the Truth
Most people don’t understand that a simple management fee of 1-2% can cost you literally one third of your gains
These people have a 20% chance of beating the market, most of them suck at it
And because they charge you fees, its even harder to beat the market
Here are some scary figures
If you start investing today with $1000 and invest $500 per month for the next 30 years
A 1% fee will cost you 130k and a 2% fee will cost you 235k
While if you just invested into the s&p 500 with a expense ratio of .03% would cost you less than 5k and you would keep almost all your money
This is not funny its stupid
Action:
Find out today how much you are paying with these crazy fees
And make the changes necerriy
I personally only invest in the s&p 500 but you could also invest in a target date fund by vanguard which also have low fees
Ps. That’s just one change
Imagine how much you save via investing into a Roth Ira
And using all the government advantages available to you
Investing More Money
Investing more money is another way to have more money
But my advice is to always invest the amount you can invest for a long period of time
And do that I recommend you start investing after you are debt freee and have a fully funded emergency acount so you don’t need to stop investing for any reason
But here is one Simple way to Make More Money ( starts with a $1000 investment at a a rate of return of 8%)
First reinvest your dividend, it’ll get taxed at a lower rate after one year as it becomes qualified dividends
But here is an example investing 500 bucks over 30 years with a stock that pays out 1.30% dividend gets you 689k return and you take out 82k in dividend
But if you had reinvested dividend you would have 847k that’s an extra 158k
That’s it:
If you can invest more, great
But even if you cant, just by lowering fees and reinvesting dividends you will go along way
Don’t just watch this video and smile
Watch this video and set up your dividend reinvestment plan
Call the companies costing you thousands and switch
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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor. source
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