Acuity 47: How to get what you don't pay for

As the late John Bogle said, "The grim irony of investing is that we investors as a group not only don't get what we pay for, we get precisely what we don't pay for."

The fact is, human beings are not well wired to be investors. Not only are we not very good with percentages – often accepting seemingly small percentage charges as immaterial - but we also grossly underestimate the impact of compounding these deductions from our portfolios over time. In fact, costs make an enormous difference to performance outcomes which, in turn, impact portfolio values and real financial and lifestyle goals. Multiple research sources identify the fact that low costs drive higher performance outcomes.

Read more in Volume 47 of Acuity: How to get what you don't pay for.