#516 The $50,000 Fee Hiding in Your Portfolio w. Shani Jayamanne

Same money, same returns, same twenty years. One fund charges 0.2%, the other charges 1%. The difference is more than fifty thousand dollars, and Shani Jayamanne ran the numbers before she walked into the studio.

Shani is an Investment Specialist at Morningstar, co-host of Investing Compass and co-author of Invest Your Way. Morningstar runs a study twice a year comparing what funds return against what the investors in those funds actually get, and the funds win by 1.2% a year. Shani explains where that gap comes from, why Australians are among the best in the world at closing it, and what that has to do with the fact that someone else decides when your super goes into the market.

WHAT YOU'LL GET OUT OF IT

The gap between investment returns and investor returns, and exactly what's causing it

Why losses hurt more than twice as much as gains, and the two mistakes that come from it

What a 1% fee really costs you over twenty years

Why more investment options make people less likely to invest at all

What happens to your returns if you miss the ten best days in the market

Lump sum versus dollar cost averaging, and where Ben disagrees with the research

Why the most sophisticated investors tend to have the simplest portfolios

The investment specialist who doesn't pick stocks, and why

CHAPTERS