How much are you really losing in investment fees, and what does that mean for your future? Experience global exposure at a fraction of the cost. Our method helps you maintain more of your portfolio’s gains.
When it comes to helping our expat clients save money, we at Expat Wealth At Work have always been staunch proponents. To that end, we’ve developed a service that we think will allow our clients to invest in some of the best businesses in the world at a fraction of the normal cost.
Below is an example of why it is so vital to cut costs before we show you how low the overall charges are if you become a client of Expat Wealth At Work.
You shouldn’t lose money due to high fees.
There is a belief that to make money, one must first spend money. However, investing fees might have a significant impact on your discretionary income.
Factors to consider
- There are fees associated with every investment.
- The value of the money you spend on fees increases dramatically over time.
- When compared to lower-cost investments, the performance of those with higher costs typically suffers because of the additional hurdles those investments must clear.
Learn about the costs involved
We at Expat Wealth At Work have always recommended that our expat clients inquire about the full cost of maintaining their investment portfolio and the specific services and benefits they receive in exchange for each fee or charge.
Even if you don’t think about it, there is always a price to pay when you make an investment.
The money you earn is not yours to keep if it is being spent on something other than what you want.
Reasons why fees matter
Although they may seem small at first, investing fees have a cumulative effect on your return. What this means is that you forfeit not only the small sums of fees you pay but also the potential growth that money may have had over many years.
If you invested €150,000 and earned 6% per year on it for 25 years with no further fees or expenses, the value of your portfolio would be €643,785.
However, if you paid 2% annually in investment costs and charges, the value of your investment would be only €399,870 after 25 years.
That’s right; the annual 2% of total costs you pay would slash the value of your investment by approximately 38%. Now that extra 2% doesn’t seem so insignificant, does it?
Expenses might erode investments
Is there anything you can do to keep expenses in check?
It may seem pointless to worry about fees, given that all investments incur them in one way or another. Or perhaps you believe that a bigger price tag indicates superior investments and greater overall profits.
Nothing could be further from the truth, unfortunately. Studies of mutual and managed funds have revealed that the higher-cost options typically perform worse than their cheaper counterparts. This is because fund managers that demand a premium may find it difficult to provide returns that justify the higher fees they charge (and may need to adopt a slightly riskier, more volatile strategy to do so).
Low-Cost Global Diversification for Less Than 1 Percent Annually
You’ll have a dedicated, Certified Pension Planner at Expat Wealth At Work who can answer your questions and address your concerns at a total cost of 0.80% p.a., and that includes the fees charged by the fund manager and the investment platform.
By investing in firms across the globe, our global allocation will expose you to over 1,600 of the world’s largest and most successful corporations, and you will have a wide range of potential investment options.
If you are interested, you can also invest in ethical and socially responsible funds that invest exclusively in the highest-quality, screened ESG firms for less than 1% p.a.
We can also provide a risk-adjusted, diversified approach, in which you can choose a fixed income bond and equity portfolio that is tailored to your individual risk tolerance and investment goals.
Your money will be invested in a variety of funds, ETFs, fixed-income bonds, etc. portfolios with exposure to a wide variety of regions, economies (established and emerging), and industries.
Those with a private offshore pension (such as a QROPS, SIPP, or EURBS) will benefit even more from the lower investing costs. Pension portfolios incur trustee fees and their own administrative costs on top of platform, fund management, and client management expenses. The more you can save on portfolio costs, the more the additional trustee charges will be offset. While we will always attempt to utilize more cost-effective pension plans and trustees, there will sadly continue to be trustee costs connected with offshore pensions.
At Expat Wealth At Work, we are committed to demonstrating to clients how they may invest in a diversified portfolio of high-quality firms around the world in a way that is both ethical and cost-effective.
Contact us today to build a low-cost, high-quality worldwide investment portfolio.
Socially responsible investing (SRI) and environmental social governance (ESG)-focused portfolio advice is now available through Expat Wealth At Work. By avoiding funds with high charges and commissions, we can keep more of our clients’ gains in their portfolios.