As we started writing this blog, we also started reading other blogs about personal finance and FIRE. The blogs are all very different, but it seems as if they all agree to one thing… that investing in passive index funds is the shit! And we are not to blame them, as it very easily gives you a diversified portfolio at a much lower cost than buying actively managed mutual funds. But are the passively managed funds so cheap at all?
As readers of our blog know, we prefer to “invest like an index fund” rather than invest in an index fund (Single stocks or index funds?). The main reason for this is costs. Cost structures for buying single stocks is extremely easy to understand, as it is the commission fee you pay when you buy and sell the stock.