You know we're talking about 0.2% pa, and even that is optional.
Investing in the stock market has never been cheaper. I've been investing for just over a decade and investing costs have easily more than halved in that time.
I've got a mid 90s Motley Fool book somewhere, that quotes 1% as a reasonable management charge just for a tracker.
My issue with this approach is that the more this gets encouraged for naive investors, the easier it becomes to shift risk away from the players who actually ought to be holding the bag. Sure, the brokerage fees themselves might not be outrageous, but what ought to be outrageous to you is the long-term consequences of empowering opaque profit-driven actors who carry perverse incentives by definition. How about the aftermath of the 2008 crisis: $850 billion getting shifted out of American pension funds into the pockets of hedge fund managers?
"the easier it becomes to shift risk away from the players who actually ought to be holding the bag"
That has nothing to do with fees.
"$850 billion getting shifted out of American pension funds into the pockets of hedge fund managers"
That has nothing to do with fees either. Further what's the current score card? As stocks have been on a 10 year bull run, and hedge funds have been relatively underperforming.
Investing in the stock market has never been cheaper. I've been investing for just over a decade and investing costs have easily more than halved in that time.
I've got a mid 90s Motley Fool book somewhere, that quotes 1% as a reasonable management charge just for a tracker.