Diversify Your Portfolio and Keep Expenses Low

 

Cristina Guglielmetti, founder of Future Perfect Planning and certified financial planner, suggests keeping expenses low when you’re learning how to invest. Even if you have great investment returns one year, high expense ratios can slash your returns. Here’s how Guglielmetti suggests keeping investing expenses low:

“Choose a broadly diversified index fund. Look up the expense ratio — the annual amount you will pay to own the fund — and compare it with others in its class. Over time, those fees can make a huge difference in the value of your portfolio.”

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