Learn how devastating fees can be to you net worth and how to avoid them.
- How to invest your 401k? Nobody knows!
- Index funds and low cost ETFs are the way to go
- Readings that changed our investing trajectory
- Who outperforms the market? Nobody. Hold the course and buy the entire US market.
- You aren’t going to find a brilliant financial advisor who can outperform the market
- Running an investment scenario and seeing the impact of fees on a 40-year return
- Scenario 1: $100k into VTSAX and letting it ride for 40 years = $2.13 million
- Scenario 2: $100k into VTSAX but hiring an investment advisor. 40 years = $1.46 million
- Scenario 3: $100k into actively managed fund + investment advisor. 40 years = $1.03 million
- VTSAX isn’t the only option, but keep in mind that FEES MATTER!
- This strategy allows us to sleep easy.
- Buying “US” companies also gives you exposure to international markets
- Warren Buffett’s advice to his trustee: Invest 90% of his estate in a “very low cost S&P 500 Index Fund (I suggest Vanguard).”
Links from the show:
- The Stock Series by Jim Collins
- Dave Ramsey Investment Calculator
- VTSAX – Vanguard Total Stock Market Index Fund
- Berkshire Hathaway Annual Shareholder Letters (essentially a free MBA!)
Books Mentioned in the Show:
- Reading those articles (Stock Series by Jim Collins) changed the entire course of my investing life.
- The likelihood of you finding that brilliant financial advisor is as close to zero as possible.
- What we’re saying is, FEES MATTER.