This Advisor Is Charging 1.95% For An ETF Portfolio -Ouch!
Investing articles can be long and boring. How about I read the article and provide you with the important information for DIY investing success.
Here it is.
First, from Warren’s Buffett’s 2018 Letter to Shareholders:
If an investor paid 1% in fees for 77 years (the length of time since Mr. Buffett bought his first shares), they would have lost 50% of their gains.
So what do we think about paying 1.95% for a simple do it yourself ETF portfolio? That’s what this woman is being asked to pay by her advisor.
Anyone can create a well diversified portfolio that doesn’t have to be modified or re-balanced for only 0.22%. Vanguard’s VGRO is an example of such a product. The ultimate in set it and forget it. So who in the world would pay 9 times as much for the same thing? The answer hopefully is no one.
Take some time to learn about do it yourself investing. The difference to you after 4 decades of saving can add up to hundreds of thousands of dollars.
Here’s the whole article, if you’re interested.
I’m a department head for a high school in Toronto. I graduated from the Ivey School of Business at Western University and have been a DIY investor for over 20 years.