Key Points

• The fee differential between active and passive mutual funds may not appear to be significant at first sight.
• However, over long periods, the impact of higher fees associated with active investing through mutual funds can be considerable, as compared to passive alternatives.
• As such, over an investment lifetime of 45 years, excessive fees could wipe out a large percentage of your potential wealth.
• Therefore, going with a passive approach has the potential to mitigate this particular concern.

Continue reading → Passive is the New Aggressive (Part 5)