Counting the true cost of upfront fees : investing

When it comes to the ultimate success of retirement savings, every rand invested over time will have a meaningful impact on the final outcome thanks to the power of compound interest. Excess, often unnecessary fees, particularly upfront fees and percentage-based admin fees, can have a deleterious effect on the ultimate value of an investment and the returns an investor will enjoy on retirement as it reduces the impact of compounding interest. Unfortunately, the modern day retirement investment industry is characterised by complexity - complicated, tiered products that supposedly offer greater returns that are accompanied by complicated fee structures.