In today’s financial market individual investors can create investment portfolios with little initial investment. Mutual funds companies and brokerage houses have made initial investing very affordable by requiring little cash outlays to open an account. Investment companies have also created many financial products targeted for individual investors who want to build wealth for the long term.
Keep Investment Cost Low
Brokers charge different fees to buy and sell stocks depending on the services offered. The full service brokerage houses may charge larger fees, while many of the discount or online brokers charge lower fees to buy and sell. Keeping investment cost low is important to obtain a better return on a stock position. However, individual investors using discount brokers need to perform a lot of the stock and market research on their own.
Mutual Funds companies offer a diverse pool of funds and each fund has its own expense schedule. These expenses are expressed as a percent of fund balance. It is recommended to stay below 1% for annual fund expenses to keep investing costs lost. [Read more…] about How to Create an Investment Portfolio and Build Wealth