You Put Up The Capital. You Take The Risk. They Take 77%.

(don’t forget to checkout the video of this blog too)

The average cost of owning a mutual fund is about 2.81% per year, which can even be higher if that mutual fund is owned inside of a fancy “advisory” or “managed” account❗️

Now maybe that doesn’t seem like a lot to you…. but it does to me.

Fees and unnecessary costs can have a drastic effect on your investment portfolio, especially over a long period of time.

Simply put, if you’re hemorrhaging money away in fees you are leaving yourself much less likely to retire early and leaving yourself significantly less retirement income when you need it.

The financial industry has went to great lengths to make it difficult to truly understand how much you’re paying for your investment dollars and most people have no idea how expensive their investments truly are.

Now don’t get me wrong, investment professionals deserve to be paid for superior performance, but unfortunately, that isn’t the norm in the “investment management” world (I know, because I spent the first part of my career in that world).

The vast majority of money managers do NOT beat the S&P 500 over the long-haul, and the ones the do in any given year, usually don’t do it the next.

It’s very rare to find a money manager consistently beating the S&P 500, unfortunately.

Now, fees are fine if you are seeing a return on your investment, but in almost all cases, you are better off owning low-cost index funds and ditching the expensive investment broker.

In fact, simply “owning the market” with an index fund strategy will outperform 96% of actively managed mutual funds.

That’s not even taking into account the average cost of ownership…

Consider this example by Jack Bogle, founder of Vanguard:

✅ If you made a $10,000 investment at age 20 and received 7% per year you would have $575,000 at age 80

❌ But, if you paid 2.5% a year in fees & expenses, your total would be only $140,000

That means that you put up ALL of the capital…

You took ALL of the risk….

And your investment advisor took 77% of your portfolio in fees and commissions over that time period.

Doesn’t seem quite fair, does it⁉️

That’s why it’s SO important to take a very close look at the fees you’re paying in your retirement accounts.

Fees can wipe out a large chunk of your would-be retirement dollars without you even really realizing it.

Low-cost index funds (minus unnecessary broker fees) for maximum wealth accumulation + a guaranteed income strategy for maximum income…

That’s the winning formula.

Let’s Chat 💬😎