Investment Fees: What Are You Really Paying For?
If two funds own many of the same stocks, why pay more for one?
That’s the question Tom Hamilton asks after reviewing a client’s 401(k) options. In this episode of Wall Street to Main Street, he walks through what he found and how he decides whether an investment’s fees make sense.
Tom also shares insights from attending Schwab IMPACT in Boston, where he met with other independent advisors and spoke directly with fund managers about their strategies, costs, and what they offer investors.
Three takeaways from the conversation:
- Look beyond the fund’s name.
Different funds can hold very similar investments at very different costs. - Ask what the higher fee buys you.
A different strategy may deserve consideration, but paying more doesn’t guarantee better results. - Question promises of high returns with little risk.
A confident sales pitch is no substitute for understanding the investment.
AI was another big topic at the conference. Tom shares how his team uses it to spend less time taking notes and more time listening to clients. Then Nick joins him for a little Bills talk and a look ahead to the Ravens game.
These materials have been independently produced by Hamilton Wealth Management. Hamilton Wealth Management is independent of, and has no affiliation with, Charles Schwab & Co., Inc. or any of its affiliates (“Schwab”). Schwab is a registered broker-dealer and member SIPC. Schwab has not created, supplied, licensed, endorsed, or otherwise sanctioned these materials nor has Schwab independently verified any of the information in them. Hamilton Wealth Management provides you with investment advice, while Schwab maintains custody of your assets in a brokerage account and will effect transactions for your account on our instruction.