All the Hacks with Chris Hutchins cover image

The Simple Path to Wealth and FU Money with JL Collins

All the Hacks with Chris Hutchins

NOTE

Prioritize Low Fees Over Investment Options

Choosing low-cost investment options is crucial for long-term wealth accumulation. High fees, even at 1%, can detrimentally impact retirement assets more than sacrificing tax-advantaged accounts like a backdoor Roth. If a 401k plan offers unfavorable fees, it's advisable to focus on either rolling over funds to minimize tax implications or investing in simpler, broad-based index funds. These funds should be low-cost, such as an S&P 500 or a total bond market index fund, rather than niche sector funds. A streamlined investment strategy, possibly using a single brokerage account with one fund, can enhance simplicity and financial clarity.

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