Calling someone cheap is not often a term of endearment, but it has become exactly that in the investment industry.
According to Morningstar, more than 95 percent of all U.S. retail investments made since 2005 were in the cheapest 20 percent of products in the market. Responding to that trend, average retail investment management prices have dropped nearly every year since then. Now everyone wants to be heralded as cut-rate and discounted.
But just like being cheap can lead people to buy washing machines and cars that break down more often, bargain-basement financial solutions can also be costlier in the long term.
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