Dear Towerpoint,

Good news! Owning shares of a mutual fund or exchange traded fund (ETF) has never been cheaper.

According to Morningstar’s annual fund fee study, the asset-weighted fee for roughly 25,000 funds and ETFs averaged 0.518% in 2017, down from 0.562% in 2016. The 8% drop was the biggest year-over-year decline since 2000, when Morningstar began tracking the data, and represents more than $4 billion in savings for investors, according to Morningstar. Driving the decline was investor preference for low-cost funds — flows into the cheapest 20% of funds within different categories surged 60% — AND fee reductions by active funds.

We continue to stress at Towerpoint Wealth the importance of being aware of and minimizing investment costs and expenses, which represent one of the two necessary evils (along with income taxes) that impede the growth of a client's net worth and portfolio. And understanding no one works for free, it is excellent news for all of us to see Wall Street's money management profit margins continue to be squeezed. As Jack Bogle, former chairman of the Vanguard group and low-cost index fund pioneer, famously said about investing:

"You get what you don't pay for."

Shifting gears, what has happened over the past two weeks? A lot:

We encourage you to take three or four minutes to review the curated content found below, highlighted by:

  • The introduction of Riskalyze into the suite of digital tools Towerpoint Wealth continues to build out and utilize in serving our clients.
  • An interesting Shark Attack chart, discussing the current dichomity between international and domestic equities.
  • Like taking selfies? Here's the app for you!

Lastly and importantly, acknowledging the price paid to afford us our freedom has always been very steep, it is a privilege to honor the members of our armed forces who gave their lives in the service of our great country on this upcoming Memorial Day.

Understanding the world remains a complicated place, we encourage you to call (916-405-9140), email (, or Tweet (@twrpointwealth) with any concerns, questions, or needs you have - we are here for you, and look forward to connecting with, helping, and being a direct, fully independent, and no-strings-attached expert financial resource for each of you.

- Joseph and the Towerpoint Wealth team

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