Size Does Matter…For Your Expense Ratio

Image Credit: Pexels

Author: Joel M. Schofer, MD MBA CPE FAAEM
Commander, Medical Corps, U.S. Navy
Originally Published: Common Sense July/August 2019

I published this article three years ago in Common Sense, but this is such a critical concept that it bears repeating every few years. In addition, the recent price war among investment firms has made it even easier to lower your investment costs.[1] There has never been a better time to take a solid look at the investment costs you are paying.

Whether you are managing your investments by yourself or getting help, you need to understand one critical concept, the expense ratio of your investments. Every mutual fund and exchange-traded fund (ETF) has an expense ratio and keeping it as small as possible is key to your long-term financial success. Size does matter.

Books, Blogs, and Podcasts to Check Out in 2019

Image source: Pexels

Author: Joel M. Schofer, MD MBA CPE FAAEM
Commander, Medical Corps, U.S. Navy
Originally published: Common Sense March/April 2019

Whether you like it or not, you have a second job. That second job is managing your personal finances.

Even if you don’t do it yourself and use a financial advisor, you still have to know enough to make sure your advisor is giving you solid advice and not ripping you o!. Many financial advisors are really just financial salesman with a particular set of skills. Those skills are designed to take money from your pocket and put it in theirs. You need to know enough to prevent this. Luckily for us, there are quality blogs that you can read online, podcasts you can listen to while commuting or exercising, and books you can get from your local library. And the best part is that all of these resources are FREE! Here are my personal favorites in 2019. I have read, am reading, or listen to everything on this list.