Why is it so important to watch costs? Aren't they all similar?

Keep this in mind as the best free advice you will ever get Costs Count - a 1% reduction in your costs will result in a 20% greater terminal balance for your portfolio over a twenty year period. That is a huge amount. It can make the difference between living the lifestyle you choose and living a lifestyle chosen for you.

It might not be quite as sexy to tell your friends that you reduced your costs by 1% as it is to talk about a hot stock, but it can be much more profitable in the long run.

There is a huge variation in costs among different investments and only a few of them are visible to the average investor. Tax costs, trading costs, custody costs, mutual fund expenses, annuity fees, and 12B-1 fees are just the tip of the iceberg and require careful management.