The Tyranny of Fees

#investing #stockmarket #pensioncraft

[abdulrahman]

Rami is an absolute legend. I love pension craft. I loved his appearance with damien

[kevinu.k.]

Yup, I put some money into a low fee ETF fund management company (Insert Big Name Here). Their fees are about 0.25%. The problem is that the find keeps loosing money. OTH the ETF company charging 1% is making good returns given the current climate. More than offsetting the fees. Sighing...

[valentinbrescan]

And Taxes. Worth considering F.A.C.T.S. Fees, Access, Complexity, Tax, Search costs for the original / a replacement investment

[keerthi]

What to do when fund management fees are revised after a period on existing funds. Switching capital involves a taxable capital gains event.

[paulturner]

Take the 2% fee at SJP and many financial advisors. If you invest for 36 years, then using the rule of 72 you have lost a doubling period, so 50% gone. Then using 4% rule in retirement you lose another 50% to fees/advice. So that's a total of 75% gone!

[kaymish]

Oh yes I saw an interview with a financial manager, and he was saying that while he couldn't beat the best of the best at generating returns he still blew them away in performance because the fees he charged were so low that he blew away the best of the best in end results.

This is the same resmason I DIY my portfolio because I am not better than a professional financial manager, but after fees are factored in I blow them away in final return; they are incapable of making enough extra to justify the fees.

[stylembonkers]

"rapidly" "over a long period of time" is a contradiction.

Rapidly means quickly i.e. over a short period of time.

[djamilac]

This is RIBA, that's why the world is screwed. And that's why it is forbidden by God. ☹️