2 Problems with Longterm Investment Strategy

While investors are well advised to follow an investment strategy that focuses on getting the asset allocation right in the long-term they face two major problems when executing it. Sticking to such a plan over many years, even decades, requires an amount of patience and self-discipline that most individuals lack. At the same time advisors and commentators often neglect to mention that one aspect that investors can control are costs and fees that can erode a substantial portion of investment returns. If neglected such costs can add up to an amount equal to the net gains accumulated in a portfolio over a period of 20 or 30 years.