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003 | Let’s Talk About Fees | Why Investment Fees Are Evil and How to Avoid Them

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Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.

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:

Books Mentioned in the Show:

Tweetable Quotes:

  • 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.

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Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.
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