By Investment U Research Team Low-cost investing is all the rage, and for good reason. Fees can eat away at your returns.
According to the Securities and Exchange Commission, over 20 years, 0.50% in annual fees lowers a portfolio value by $10,000 compared to investment fees of 0.25%. If the fees are 1% annually, that reduces the portfolio’s value by close to $30,000.
Put another way, it costs you $28,000 over 20 years if your fees are 1% on a $100,000 investment. Had you invested that $28,000 at the same rate, you would have earned an additional $12,000 over that timeframe.
There are two camps when it comes …read more
