How reducing your costs can improve your investment returns
In most areas of life, you get what you pay for. If you pay more, you get more.
But in the world of investing, you get what you don’t pay for:
When you think about it, it makes sense. Costs matter, because every pound you pay is a pound less in returns.
What’s more, just like returns, the impact of costs compounds over time. Seemingly small differences in costs have a big impact over time.
The chart below shows the impact of costs of 1.38% over 30 years. It might not sound like a lot, but over 30 years it’s a difference of nearly £200,000!
(Source – Vanguard)
To quote Warren Buffett, “performance comes and goes, but fees never falter.”
Keeping your costs low is an easy way to improve your chances of investment success.
All the best,
Independent Financial Adviser in Bristol
P.s – if you want a little more help with navigating your investments, check out the 7 Simple Steps to Investment Success. It provides you with a proven process to help you avoid costly mistakes and tilt the odds in your favour.You can get a copy by clicking here.