2 Replies Latest reply on Mar 4, 2015 2:14 PM by JerryD

    it's 11 o'clock - do you know what your fees are?

    BoBraxton

      The difference between a 1% Fee and a 3% Fee is forty-percent of your investment gains you would have made in your lifetime.

        • Re: it's 11 o'clock - do you know what your fees are?
          JerryD

          I believe that you are referring to an investment's ER or "expense ratio". Whereas I agree with you from 100,000 feet, I constantly tell people fixated on this one part of an investment that what is really important is what return are you getting.

           

          If you are comparing index funds or ETF's with little to no investment choice management, then indeed the ER difference is important if it is significant. However, if you are looking at different investments with different goals, real estate versus international equities, for example, then comparing the ER's can be rather meaningless. Even managed investments with similar goals, US equities for mid-size companies, for example, but with different mangers can have quite different results that make the focus on just the ER management cost quite much less important.

           

          I always caution about being trapped into just accepting investing generalizations one is feed over-and-over (i.e. market timer, ER, asset allocation, dollar-cost averaging, reallocation, etc.) without really understanding how they fit with your goals can be disastrous to your finances, especially when situations like the 2008-2009 recession come along and almost "all boats sink".