A percentage or two
difference in fees easily adds up to hundreds of thousands of dollars by the time you're ready to retire.
A half - percentage -
point difference in fees will translate into thousands of dollars less in total return over an investor's lifetime.
Though this is an overly simplified investing example, the power of compounding returns is nonetheless illustrated, showcasing the impact of a small
difference in fees over the long - haul.
For example, the SEC reports that a.75 %
difference in fees on a portfolio of $ 100,000 will cost an investor $ 30,000 over the course of 20 years.
If instead of a lump sum contribution you are making annual contributions a
greater difference in fees is required for the focus on fees to outweigh the state income tax deduction.
If they were down, or crashing, during this time frame, then the mutual fund would probably have outperformed the ETF by a huge margin (instead of just barely - which was driven mostly by
minor differences in fees and expenses).
For example, the SEC reports that a.75 %
difference in fees on a portfolio of $ 100,000 will cost an investor $ 30,000 over the course of 20 years.
Despite trends indicating an overall decrease in fees across many fund categories, investors should still pay attention to expense ratios: even
small differences in fees can have a significant...
Due to the power of compound interest, even a seemingly tiny 0.5 %
difference in fees can cost you hundreds of thousands of dollars and delay your retirement by years, even decades.
Because of the power of compound interest, a single 1 %
difference in fees can cost you hundreds of thousands of dollars over the years.
CHO: Yes, the prices can vary wildly, but I'd say the market is pretty efficient at pricing in
the differences in fees among the exchanges, in how they are structured, and the jurisdictions where they are set up.
In fact, even a 1 %
difference in fees can make a HUGE impact on your investment returns.
Wells Fargo's ATMs and banks are much easier to reach than Citibank's, and
the differences in fees and limits don't make up for Citibank's disadvantages in accessibility.
Both funds do basically the same thing, but
the difference in fees is gigantic.
The documentation must take into account
the difference in fees and services between the employer - sponsored plan and the IRA.
In some places
the difference in fees is even higher.
Wells Fargo's ATMs and banks are much easier to reach than Citibank's, and
the differences in fees and limits don't make up for Citibank's disadvantages in accessibility.
For everyone else, the biggest factor to consider is
the difference in fee waivers: Wells Fargo waives monthly fees for customers who make $ 500 or $ 1,000 in monthly direct deposits, while most US Bank checking accounts omit that option.
In fact, even a 1 %
difference in fees can make a HUGE impact on your investment returns.
Over the course of 10 years
the difference in fees is enough to buy you a new car.
Even a small
difference in fees can make a significant impact on your portfolio's value over time with compounded returns.
Even a small
difference in fees can have a significant impact since you can not benefit from compounding on money you've paid in fees to a third party.
In some cases,
the difference in fees can be substantial therefore it is worth spending time on it.
The benefit of the tax deferral might outweigh
the difference in fees between the mutual fund and the ETF, and you're not taking on any additional risk with the more expensive fund.
I encourage them to remember transaction costs can easily overwhelm
the difference in fees.
Both funds do basically the same thing, but
the difference in fees is gigantic.
That difference in fees can put the smart beta fund at an immediate disadvantage.
Even a 1 percent
difference in fees can translate to tens of thousands of dollars over time.
A 2 %
difference in fees will make a huge difference in your retirement.
Just a 1 %
difference in the fees you pay can mean tens of thousands more in your account later on.
One important thing to note is
the difference in fee structure.