I've been with a variable-income fund at CaixaBank for about 8 years now, and they charge me a 1.5% annual management fee. Lately I'm seeing ETFs that are way cheaper, and some colleagues are telling me I should switch. Is it worth making the change or better to just leave things as they are?
that 1.5% fee is eating up a ton of your gains in the long run, especially if the ETFs you're looking at charge 0.3% or less! with 8 years already under your belt, the switch makes sense but definitely check the tax hit from selling first, because sometimes the tax bill wipes out whatever you'd save on fees.
The 1.2% annual gap between what you're paying now and a cheap ETF will add up significantly after 8 more years, but before you make a move, check carefully if there are any unrealized losses or gains in your current fund, because sometimes the cost of selling and reinvesting can eat into the savings you're expecting.
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