003 | Let’s Talk About Fees | Why Investment Fees Are Evil and How to Avoid Them
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003 | In Today’s Podcast we cover: Avoiding fees when investing 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).”
