Quote:
Originally Posted by Slava
Right, there are ways to reduce fees and for the record I'm in favour of reducing fees. All I'm saying here is that we have to compare apples to apples which a study like that is not doing. The implication they make is that you can buy the funds for the same cost which is simply not true.
You can invest quartely or yearly, and that will reduce the transaction fee. It also takes away from the point of dollar cost averaging though, which has been shown to reduce the overall gains. Letting your money sit in a savings account for $0 (or close enough) while you could be making money is not a good idea either.
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True enough. However at some point after years of investing the chunk you have invested will still get pillaged at 2% per annum or higher without justifying its expense vis-a-vis stronger returns. Over the long term that has to eat away at gains maximized through dollar cost averaging.