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Escenario A
Scenario A final
140.464 €
Costs: 2448 €Tir: 6.8%
Scenario B final
116.842 €
Costs: 16.244 €Tir: 5.5%
Escenario B
Side-by-side evolution
A B
StartYear 20
Difference in final capital: 23.622 €
See how a small difference in management costs (TER) can mean tens of thousands of euros over 20 years, through negative compounding.
Our portfolios and brokers
This is how we split our own money: the main portfolio, the emergency cushion kept separate, the children's long-term savings and fixed income in bonds. Each with the provider that fits its purpose.
Principal
Main portfolio
Global access to 50+ markets. Core ETFs from €1. Crypto ETNs. A diversified portfolio.
Emergency fund
Interest at the ECB rate. Your emergency fund, always available.
Children's future
Automated index investing, free for the first year through this link up to €15,000.
Fixed income & bonds
Bonds with regular coupons and access to US and European markets. Plus interest-bearing savings in € and $.
Robo-advisor or broker? Guide to investing in index fundsIndexa Capital review: fees, returns and who it suits
Smart Money Activity selects these services on quality and price. Some links may be affiliate links. Terms (fees, rates) depend on each provider; check them on their official sites.
The silent impact of fees (TER)
John Bogle, founder of Vanguard, used to say: "In investing, you get what you don't pay for." Fees are the one factor you control completely, and the one that guarantees a higher net return.
Many investors dismiss a 1% or 2% difference in a fund's TER (Total Expense Ratio) as irrelevant. But as this simulator shows, over the long run that small percentage, compounded, can mean losing a third or more of your potential returns.
"Properly measured, the average actively managed dollar must underperform the average passively managed dollar, net of costs."
— William F. Sharpe (Nobel Prize in Economics)
Opportunity cost
Every euro you pay in fees is not just a euro lost today; it is a euro that stops compounding for you over the next 20 or 30 years. That is the real cost of funds with excessive fees.
Before taking out a financial product, always check the TER and compare it against low-cost index alternatives.