Cost Me Blog · Category
Investing
Index funds, compound interest, fees, and the rest of investing explained in plain English. No stock tips, no hype — just what the words mean and why boring, low-fee, long-horizon investing tends to win.
21 articles
Saving vs investing: the difference, in plain English
The words get used interchangeably, but they describe completely different jobs. Saving for retirement and investing for an emergency fund are both mistakes — and both are common. Here's the honest version.
Read →Wealthsimple CDRs explained: what they are, and what nobody tells you about the downside
Buying Amazon stock in Canadian dollars sounds frictionless. The mechanism — Canadian Depositary Receipts — has real benefits and real costs that nobody puts on the marketing page.
Read →How much do you really need to retire?
$1 million sounds like a lot until you do the math on 30 years of withdrawals. Here's what the real number looks like — and how to think about getting there.
Read →What does $50/month become in 40 years?
$50/month is the price of skipping two takeout meals. Over 40 years it's the price of a paid-off retirement. Here's the math, broken down by how early you start.
Read →Index funds explained: why boring beats clever
The investing strategy that beats most pros is the one that takes 20 minutes to set up and zero attention thereafter. Here's how it works and why it wins.
Read →Dollar-cost averaging: does it actually work?
Conventional wisdom says DCA is always safer. The math says it depends. Here's the honest version, with examples.
Read →The simple 3-fund portfolio
Most investors overcomplicate their portfolio. Three funds, total. Here's the exact recipe, the reasoning behind it, and how to actually buy it.
Read →Why most active investors lose to the index
If the pros can't beat the index, why are you trying? Here's the math on active management's track record — and the structural reasons it doesn't work.
Read →Roth vs Traditional IRA: a plain-English guide
Two account types. Most personal-finance writing makes the choice harder than it is. Here's the actual decision rule that covers almost everyone.
Read →The 4% rule: what it is and why it matters even if you're not retiring
If you can withdraw 4% per year safely, then you need 25× your annual spending to retire. That's the entire FIRE movement in one sentence — and it changes how you think about earning today.
Read →What does "the S&P 500 averages 10% a year" actually mean?
Real returns aren't smooth. Some years are +30%, some are -37%. But the long-run average is remarkably stable — and it's the foundation of every projection Cost Me makes.
Read →What is a mutual fund? Plain English
Many people put money in one pot; a manager buys a basket of investments with it; you own a slice. That's a mutual fund — just mind the fees.
Read →Compound interest, explained: why time beats money
Einstein supposedly called it the eighth wonder of the world. He didn't, but the math is wondrous anyway — and most people drastically underestimate it.
Read →Index fund vs ETF: what's the difference?
'Index fund' describes what it owns; 'ETF' describes how you trade it. They often overlap. Find the low-fee one, buy it, and don't lose sleep over the rest.
Read →Dividend reinvestment (DRIP) explained
Reinvest a dividend and you own a bit more, which pays a bigger dividend, which buys a bit more again. That's a DRIP — compounding doing what it does best.
Read →What is a bond ladder? Plain English
Split your money across bonds that mature at different times and cash comes due in steady steps instead of all at once. That's a bond ladder.
Read →How fund fees add up over decades
A 1% fee is never just 1%. Taken yearly across decades, it steals not just the fee but all the growth that money would have made. The math always favors the cheaper fund.
Read →Emergency fund vs investing: what comes first?
A basic cash cushion comes first, then investing. A safety net stops a surprise bill from forcing you to sell investments at the worst moment.
Read →Brokerage vs retirement account, explained
The account you invest through changes the tax rules a lot. A brokerage is flexible with no tax perk; a retirement account is tax-favored but locked until later.
Read →What is a money market fund? Plain English
It holds short-term, low-risk stuff and tries to stay steady while paying a little interest. A calm parking spot for cash you need soon — not a path to wealth.
Read →What is an IRA? Plain English
An IRA is a personal retirement account with a tax perk. It's an empty basket you fill with investments yourself — it doesn't grow on its own.
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