Do you know what you are invested in? Don’t know what you are invested in because somebody is doing it for you? There is a chance that you are invested in high-cost mutual funds (yes, 2% per year is HIGH COST) – and these fees can add up to thousands of dollars PER YEAR, every year. Picture this:
- every month, you contribute $500 to your investment portfolio
- you invest this money in a mutual fund that charge 2% commission of your total investment, every year
- say, on average, the portfolio returns 8% per year
- in 10 years, you would have paid $8,468 in fees
- in 20 years, you would have paid $44,134 in fees!!!
If you think about it, 2% of the 8% works out to be about 25% of your returns, per year. 2% may not seem like a lot of money, but those fees add up. BIG TIME. Why leave so much money on the table, when you don’t have to?