November 19, 2009
Lower fees = money in your pocket
Its hard to read but this is the comparison of $50,000 invested over twenty years in two funds, both with returns of 8%. The high-cost fund has fees of 1.19% compared with 0.20% for the low-cost fund. You can see the difference is almost $40,000, which is money in your pocket!!!
Now I know you like your stockbroker but you are paying him and his firm a ridiculous amount of money for the exact same product. If you like him so much, buy him a car because thats about what you are paying.
Posted by Scott Barclay