I have been a Mercedes owner for a number of years. Let’s imagine that you purchased a new Mercedes for £50,000. Would you purchase the same car for £150,000.
It actually seems madness. Of course, you wouldn’t.
You would only pay the difference if you were getting something extra, not for something that was identical.
Yet in the world of investment management, families throughout the world when investing in ISAs and pensions are doing just that. They’re paying for something they are not getting.
In fact, investors are buying stories. Stories that seem like buying a car for £150,000 is good value when you could buy the same model for £50,000. In fact, you are the beneficiary of great sales skills.
If you invest £500,000 in 2 portfolios. Both deliver 7%. One costs 3 times as much. How does 0.5% compare to 1.5% over 30 years? The make the wrong choice and it cost you £800,000+