While investors cannot control the markets, they can control (at least to a large extent) the amount they pay to invest and maintain their portfolios. We believe minimising fees and costs should be a critical focus of every investor’s strategy.
The level of costs and fees incurred while investing can have a dramatic impact on overall portfolio returns, particularly over the longer term. This is because the lower the costs, the greater the proportion of an investment’s return which can flow to the investor and the larger the potential for that money to be reinvested and compound into the future. Put simply, every dollar saved in trading commissions and management fees is an extra dollar available for investment and earnings potential. Over time, even small differences in fees and costs can add significant additional returns.
The calculator below illustrates how significantly costs can affect long-term portfolio growth. Try it out for yourself and see what a difference fees make.
Projected performance over 20 years for an initial investment of $100,000 with $10,000 added each year, with 7% average annual return
If you invested
Your estimated account balance would be
With Six Park
With Generic Portfolio Advice
At Six Park, our focus is on keeping costs as low as possible. All of our portfolio offerings are represented by low cost, passive ETFs. Not only do these products charge low fees, but being passive, they tend to have lower portfolio turnover (i.e. less buying and selling of investments), which minimises the underlying transaction costs and associated taxes - especially compared to actively managed alternatives. In addition, Six Park’s fees are significantly lower than those incurred with traditional investment advice. This ensures you retain as much of your well-earned investment returns as possible.