alt Hacker NewsIIRC average stock market returns have historically been around 7% per year. Index funds charge around 1% per year.
My stock ISAs have gone up pretty much every year (after inflation and fees).
Replies
> Index funds charge around 1% per year.
You're getting ripped off, you should be paying a small fraction of that.
Putting your money into an index fund is the exact opposite of what is being advertised, e.g. trading platforms optimized for day trading, complete with blinkenlighten and "learn to trade" mini courses teaching technical indicators and other voodoo nonsense.
1% is quite extreme, the S&P 500 fund I use (FXAIX) charges .015% per year which is almost 70 times less expensive than 1%.
> Index funds
That's not what the ads for the stock trading platforms want you to do
I was very careful with my words. I said:
> The punter does not win on average with stocks due to fees and spread.
Literally 100% of my investing is the stock market. I have so much faith in the stock market that I rent because I don't want to waste the opportunity cost on equity in property.
A punter is informal slang for a person who gambles. I buy and hold a diversified portfolio of index funds over decades. I am very much not a punter.