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Fees matter, they matter a lot, one of the best things you

can do for your future wealth is to keep a

close eye on fees. In fact my iron

rule is this: I don't want you to spend more

than 1% of your investment portfolio per year on fees

costs and charges. 1% may not sound like a lot

but over the long-term, investing in the world stock market

typically makes you about 7% per year on average. 1%

per year out of 7% per year is 14% of

your profit lost each year to fees. High fees of

to 2,3,4% are annoying over 1-year but devastating over

the decades to your retirement. That's because your investment should

grow exponentially over time through the power of compounding. If

you invest 100 dirhams in year one, you get 7% on

that in year one.

Then in year 2, you get another 7% on 3 things: The

100 dirhams you put in originally in year 1, the

100 dirhams you put in during year 2, but also

you make 7% this year on the seven percent you

made last year. That compounding rapidly grows your portfolio over

time especially in the later years. 100 dirhams grown at 7%

over 30 years becomes 761 Dirhams over 30 years. If

we take off 1% fees, then you're getting just 574 dirhams

and you've lost 25% of your potential value. With

2% fees, you're losing 43%. With 3% fees, you're losing

57% and with 4% fees, a whopping 68%. And

that is why long-term savings plans sold by commission hungry

advisors,

don't grow.

Because there is an advisor fee and a platform fee and

fund management fees and many other hidden costs that stack

up to about 4% of your portfolio.

I'm going to show what you can invest in and

how to do it,

so you can keep fees comfortably down below 1% per

year, and you can thank me in 30 years time.

Within that 1%, you need to cover the following. Advisor

fees, you don't need an advisor, you can do

it all yourself, I promise. Advisor fees, platform fees

and inactivity fees. Then foreign exchange spreads and transfer charges. Then

trading commission and fund management fees. I'll talk about all

these and how to minimise them in the next few

videos.