David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: How much can this technique boost a portfolio s returns?
David Marotto: Because the difference between expense ratios of the lowest cost exchange traded funds and the mutual funds can be almost of 4%. It can boost you re return by a percent a year. Now, a percent a year is huge, that amount will allow you to double your stocks every seven years instead of every eight or nine years to double your stock in investment portfolio.
So, a percent is worth a lot.