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It's shocking how much of that gets eaten up by investment fees when you're only investing a small amount of money. It's also amazing how small investment fees
by orbitingpluto 8y ago
It's shocking how much of that gets eaten up by investment fees when you're only investing a small amount of money.
It's also amazing how small investment fees can become.
- waterphone 8y agoIf you're losing much of that to fees, you're investing in the wrong funds with the wrong firms. Vanguard, Fidelity, Schwab: no fee, low-expense ratio total market index funds. In my target retirement fund, I'm paying $16 per year per $10,000 invested, and that's not the lowest ER fund you can find.
- orbitingpluto 8y agoMany employees find themselves forced to select between a narrow selection of mutual funds from their employee provided RSP. Unless they forego their employee contribution to the RSP, they have very little flexibility.
- waterphone 8y agoLow quality fund options in employer provided retirement account are a problem, but in the U.S. you can roll it over into a self-controlled IRA at whatever provider you like once you change employers, so for most people the number of years it'd be subject to those higher fee funds is not too high, at least.
- orbitingpluto 8y agoI completely agree with everything you said. But not everyone can do a triple flip with a half twist while navigating the financial system. i.e. I think I reworded my original comment in reverse.
- waterphone 8y agoIt's not very complicated at all, the issue is more a lack of education. Online personal finance resources and communities help a lot, but people still have to know to seek out that information.