The dirty secret
When you invest, others want money from you.
Those are fees.
How they work
You invest 1,000€. Bank charges 1% yearly.
Every year you lose 10€.
Sounds small...
Multiply by 30 years.
With 1% fee: 1,000€ = 2,600€ With 0.1% fee: 1,000€ = 7,600€
THE DIFFERENCE IS 3 TIMES.
Where you pay fees
Active funds: 1-2% yearly (rarely beat market) Index funds: 0.1-0.5% (always beat) Expensive brokers: 10-20€ per trade (theft) Cheap brokers: 0€ (Degiro, IB)