Let’s say your investments are valued at £1m.
You delegate your investment decisions to wealth managers. The average costs are 2.5% per annum. If your gross investment return was 6% per annum, in 25 years you now have £2,395,822
If your costs were only 0.5% per annum, you get the same outcomes by investing £600,000 not £1m.
In other words, by taking action today, you are richer by £400,000.
Of course, this is maths, but it is more about perspective. Rather than thinking it doesn’t matter how you invest your money today, clearly, it does matter. What could you do with £400,000? Could you gift it to your children? Spend more on holidays? Keep it and grow your wealth? £400,000 could be invested to even pay your IHT.
It is easy to put investment decisions off until another day. It is also easy to think you are paying less than you are and to think you are making more in investment returns than you are. Your focus is building the evidence to help you know what you think you are making compared to what you are actually making. If you want to know what questions to ask about your money today, just ask.