

The smallest details
Can make or break the game
This lesson is no different
(thread)
What is it?
-The amount you pay
Per year
For owning a fund
Whatâs a fund, you ask?
-An entity thatâs investing your money
Into a group of stocks
-The amount you pay
Per year
For owning a fund
Whatâs a fund, you ask?
-An entity thatâs investing your money
Into a group of stocks
Whatâs a ânormalâ ratio?
-1.5% is usually what you pay to the fund
For example:
If you invest $10k
Then you pay $150 every year
Might not seem like much,
BUT letâs do the math..
-1.5% is usually what you pay to the fund
For example:
If you invest $10k
Then you pay $150 every year
Might not seem like much,
BUT letâs do the math..
Letâs say you save $1200 per year
For 40 years
And make 10% every year
AND
Your expense ratio is 1.5%
=
You will make $371,051
Nice.
BUT...
You would LOSE $188,508
Due to that 1.5%!!
For 40 years
And make 10% every year
AND
Your expense ratio is 1.5%
=
You will make $371,051
Nice.
BUT...
You would LOSE $188,508
Due to that 1.5%!!
HOWEVER
Expense Ratios can hurt you!!
The smaller the %
The better.
Now,
Letâs look at another example
Check this out
Expense Ratios can hurt you!!
The smaller the %
The better.
Now,
Letâs look at another example
Check this out

You save $1200 per year
For 40 years
And make 10% every year
AND
Your expense ratio is 0.04%
(wayyyyy smaller)
=
You will make $558,842!!!
For 40 years
And make 10% every year
AND
Your expense ratio is 0.04%
(wayyyyy smaller)
=
You will make $558,842!!!
REMEMBER
A great fund can help or hurt depending on the expense ratio
This is one area that is often overlooked
Make sure to consider this
When you invest.
A great fund can help or hurt depending on the expense ratio
This is one area that is often overlooked
Make sure to consider this
When you invest.
Like this thread?
What are some funds that you are invested?
Let us know what you think
Never stop being athletic
What are some funds that you are invested?
Let us know what you think
Never stop being athletic
