How the cost of investing erodes your wealth

As the legendary US investor Jack Bogle once said: “In investing, realise that you get what you don’t pay for. Whatever future returns the markets are generous enough to deliver, few investors will succeed in capturing 100% of those returns, simply because of the high costs of investing—all those commissions, management fees, investment expenses, yes, even taxes—so pare them to the bone.”

You’ve worked hard to accumulate your wealth and we know you don’t want to see your returns eroded by costs.

This is why BRWM operates differently.

Unlike many other wealth management companies, we're independent and operate on a fee-only basis; we’re not tied to any financial organisation and don’t receive commission for buying or selling your investments.

Unlike BRWM, traditional wealth management companies face higher manager expenses in attempting to beat the market. 

Their active approach also incurs turnover (dealing) costs, whilst increased trading frequency may also leave investors more exposed to tax.

If the additional costs of active management amount to two to three per cent annually, the active manager faces a big long-term challenge in even matching the passive investing approach taken by BRWM.

See the impact for yourself. The following chart compares the ending value of a hypothetical investment of £1 million growing at a rate of eight per cent per year at various rates of annual investment expenses.