9 Insights Savvy Investors Use To Take Charge of Fees

A fee that eats up 1% of assets each year might not seem like much — except that the charge bleeds assets from your account. As an example: Assume you have 35 years until retirement and a current account balance of $25,000. If returns over the next 35 years average 7% and fees and expenses reduce your average returns by 0.5%, your account balance will grow to $227,000 at retirement, even if there are no further contributions. If fees and expenses are 1.5%, however, your account balance will grow to only $163,000. The 1% difference would reduce your account balance by 28%.
If you realize you are overpaying after looking at this slide show, try to negotiate a new rate. Think of it as an instant investment return.