Cost minimisation
1% saving results in 30% more wealth after 30 years. For many people that's >$500k more for retirement — the equivalent of years of work — from a few hours of financial housekeeping each year. It'll be the highest paying work you ever do, and so many people avoid it for no good reason.
When you spend your money, make sure you understand what you're paying for, what the alternatives are, and what is good practice to aim for. When buying a microwave we know we should shop around to get the best price and that's only a few hundred dollars. Then when it comes to decisions which can be tens or hundreds of thousands of dollars we do less research than we did for the microwave.
There are six categories of cost minimisation which each could reduce your losses by 0.5 - 2%, that could be worth millions for you.
Impact of 1% return difference over 30 years
Starting with $100,000, compounding annually
Six places costs leak from your returns
These are the ongoing and one-off cost categories to review when you invest. Each has its own Academy page.
FAQ
Focus on net returns after all costs. Sometimes higher-fee investments can still provide better net returns, but always compare the total cost structure.
Don't minimise costs that provide genuine value, such as professional advice for complex situations or insurance for significant risks.