I want to be clear about something - there is a 1% that is hurting millions of Americans financially year after year. It's something I feel is important enough to share again.
I wrote about this 10 months ago when steemit was 1/8th the size it is now. Hopefully this info can help many more given the large community we now have.
This 1% is....
Cutting into the retirement savings of people by upwards of 25% and shaving years off how long they can live on that money.
Worst part – people can easily avoid this 1% killer
The 1% is Investment Fees!
Whether it’s mutual funds, 401(k) programs or even index funds. Millions of people are paying 1% more in fees than they should be. For the same service they would get either way!
The bottom line - paying 2% fees to have money invested in mutual funds or the like is leaving money on the table. You must re-evalute that and move your money into funds that will only cost you 1% in fees.
Let’s take a quick look at what a 1% difference will make over the course of someone’s working years.
Look at the following scenario:
- Starting 10k investment
- Invest additional 10k each year for 30 years
- Average annually return of 8% (essentially market returns)
Fund 1 = 1% fees
Fund 2 = 2% fees
See the difference?
The person in fund 2 gave up $177,424 (an additional 25% return lost to fees)
The higher fees hurt your investments by taking more money out of your investing pool, but they also negate the returns you would have made on those additional dollars too!
It’s a double whammy to your financial success!
If you want to run scenarios to see how much different percentages will impact your returns - the SEC Fund Calculator can be found at: https://www.sec.gov/investor/tools/mfcc/holding-period.htm
Don’t let the 1% kill your financial future
Best Regards,
Disclaimer - The content in this post is for informational purposes only. Consult your financial professional when making investment changes.