How Much Are Fees Really Costing You?
| Fund Type | Expense Ratio | Verdict |
|---|---|---|
| Vanguard S&P 500 (VOO) | 0.03% | Excellent |
| Fidelity Total Market (FSKAX) | 0.015% | Excellent |
| Target Date Fund (avg) | 0.10-0.15% | Good |
| Actively Managed Fund (avg) | 0.50-1.00% | Expensive |
| Financial Advisor + Fund | 1.00-2.00% | Very Expensive |
| Hedge Fund (2 and 20) | 2% + 20% of profits | Extreme |
| Rule | Why |
|---|---|
| Never pay more than 0.20% for index funds | VOO/VTI/FSKAX are all under 0.05% |
| 1% fee = 25% less money over 30 years | Fees compound AGAINST you |
| Index beats 90% of active funds | Higher fees don't mean higher returns |
| Check 401k fund options | Some employer plans have expensive funds |