How index funds work: why doing nothing beats most experts
How a 1% fee can eat a quarter of your money over 30 years
Add up 30 years of fund fees at 1% a year, and the total looks like a few thousand dollars. The real cost can be more than twice that. Where does the rest of the money go?
-
1
Miva wants to know what 1% really costs. She takes the same market as before, 7% a year, and runs both funds for 30 years. To be fair, she lets Rono's team match the market exactly.
-
2
After one year, the two funds are about $100 apart. Nobody would ever notice that.
The rest of this episode is for subscribers
Subscribe to read every premium episode. You can cancel when you want.
Paid yearly: $99 instead of $119.88