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Why investment fees matter so much
A small percentage, taken every year, adds up.
Investment fees are usually shown as a small percentage, which makes them easy to overlook. Over decades, the difference between a low-cost and a high-cost fund can be large.
Fees to look for
- Expense ratio: the yearly cost of a fund, as a percentage of what you hold
- Account or plan administration fees
- Sales charges (loads) on some mutual funds
- Advisory fees if someone manages your money
Where to find them
Fund fact sheets and prospectuses list the expense ratio. Your 401(k) plan must give you a fee disclosure. Ask any adviser how they're paid, in writing.
General educational information only, not investment advice. All investing involves risk. Nickel Gains isn't paid by any broker, fund company or adviser.