Get Up to 70% More Returns On Your Investment By Lowering Your Fees

1% in fees can cost you 20% of your investment gains.

2% in fees can cost you 40% of your investment gains.

3% in fees can cost you 60% of your investment gains.

My accountant friend did the calculations and his calculations came to 3% in fees can actually cost you up to 70% of your returns in one year.

70% of your return in one year, killed by fees.

Can you imagine how much more you’d lose when the market goes down?

Can you imagine how much you’d lose in 30 years?

It’s mind boggling how much money is expensed away in fees and it’s insidious to know it’s even legal to do this.

These investment vehicles have an average fee of 3% you are likely investing in right now if you invest, is touted as safe and a way to diversify your investment.

Year over year, 96% of these investments don’t even beat the market. 96%

That means only 4% of these investments beat the market, and the 4% that do beat the market, change every year.

Again, how is it even legal for these to be one of the main recommended investments for most people?

What exactly is this investment?

It’s a mutual fund!

Mutual fund, the investment vehicle many financial advisors and companies advise you to invest in cost you a lot more than they should.

They are even loaded with hidden fees. Yes their ticket says the fee is 1%, did you read their prospectus?

You’ll get hit by so many different fees during the investment mentioned in the 50 page prospectus they give you when you invest.

Then you’ll get hit with a tax bill for short term gains because mutual fund money managers love to buy and sell as if they can beat the market (only 4% do).

The average mutual fund fee is 3%.

Let’s do some quick math to show you how that can cost you nearly 70% of your gains in one year.

Lets say your investments received a 6% return this year.

3% is taken out by the fee so 6% – 3% = 3%.

And lets say because your mutual fund was actively traded, you have to pay short term gain taxes at around 33%.

3% – 1% = 2%. You are left with 2% which is 33% of your investment gain, that means you paid out 67%!

Can you imagine how this could easily kill nearly all your gains, to not even beat inflation?

That’s what mutual funds do and I’m glad you’re able to see how these are hurting your investment portfolio.

Now, what can you invest in that regularly beats mutual funds and has fees that are 60 times smaller than mutual funds at the lowest fee being .05%?

Index funds! Many index funds buy investments that nearly mirror the stock markets of USA, bonds, foreign markets etc and you can get the gains of the market at a very low fee.

Rarely does anyone beat the market who is not one of the best investors in the world, even the best investors in the world get a near 50/50 accuracy rate for predicting the market (unless you are Ray Dalio or Warren Buffet, it just doesn’t happen often).

Investing in Index Funds will allow you to get the gains of the market with VERY low fees and higher gains because the market generally gains!

What companies should you buy Index funds from? Vanguard and Barclays are good to start with.

These two companies have many Index funds at very low fees. Take a look at starting with VTI from Vanguard, and remember to diversify your asset allocation so you protect yourself from over exposure to risk depending on how risk adverse you are or growth oriented.

Stay away from mutual funds so you can grow your assets even faster.