Index funds crush active management’s hidden fees

During the 1990s, I chased star fund managers with fancy names and glossy brochures. Every year I paid 1–2% in fees, often on funds that underperformed. It stung twice: once when I lost to the market, and again when those fees skimmed off thousands.

Then I discovered Jack Bogle’s revolution—index funds. A small expense ratio of 0.05% meant more of my returns stayed in my pocket. I still remember clicking trade to shift my last high-fee fund into VTSAX and feeling an enormous weight lift.

Years later, having survived crashes, booms, and shifts in the financial landscape, I know that simplicity trumps complexity. By cutting fees and letting a total market index fund do the heavy lifting, I outperformed nearly every actively managed fund. My portfolio’s steady growth and lower costs became my quiet triumph.

You’ll tally up your current fund fees and contrast them with a broad index fund in your own plan. Map out any tax implications, then execute the switch. Finally, automating your contributions locks in the low-fee advantage. This straightforward swap slashes drag and compounds your gains—start tonight.