CNN Money Article on how much fees can add up

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A440
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CNN Money Article on how much fees can add up

Post by A440 » Wed Jul 11, 2018 4:49 pm

Nice to see the message is getting out on Money.CNN

https://money.cnn.com/2018/07/11/pf/ret ... index.html

I believe Bogle stated something like "In investing, you get what you don't pay for"
You can't control the returns, but you can control the fees you pay.

WallStreetPhysician
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Re: CNN Money Article on how much fees can add up

Post by WallStreetPhysician » Thu Jul 12, 2018 5:01 am

A440 wrote:
Wed Jul 11, 2018 4:49 pm
Nice to see the message is getting out on Money.CNN

https://money.cnn.com/2018/07/11/pf/retirement-fund-

I believe Bogle stated something like "In investing, you get what you don't pay for"
You can't control the returns, but you can control the fees you pay.
Yea I saw this article-with the click-bait title and huge audience, it’s nice to see index investing (with a shout-out to Vanguard) highlighted.

-WSP

nova1968
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Re: CNN Money Article on how much fees can add up

Post by nova1968 » Thu Jul 12, 2018 7:15 am

I recall in the 80s and 90s it was common to make 20% or even 30% a year on stocks, CDs and MMs were around 9%, As a result of large gains during the 80s and 90s 1% did not seem like much. Nowadays even a 5% return on stocks is considered good and fees are a significant factor when it comes to portfolio planning. It wasn't until I joined the BH site that I learned about how the impact of fees can affect a portfolio over the long term.
Fortunately, as a Fed employee I compounded several years into the TSP which has very low fees but never paid much attention to fees on assets outside the TSP until a few years ago.

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willthrill81
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Re: CNN Money Article on how much fees can add up

Post by willthrill81 » Thu Jul 12, 2018 10:49 pm

While I really enjoy listening to the Stacking Benjamins podcast and think that they generally give very good advice, it really grates on me how often they say things like "fees never kept anyone from retiring." That's like saying that no one ever went bankrupt from throwing a $100 bill into the fire once a year. Even if their statement is true, and I doubt that very much, it's still a bad idea unless you get more added value from it than it costs you, and this is seldom the case. It has been repeatedly demonstrated that high fee funds have rarely been worth the cost (i.e. "you get what you don't pay for"). The assets-under-management (AUM) fees that most 'advisors' (i.e. salespeople) of 1% or more can easily cut the amount you'll retire with in half. Jim Dahle (White Coat Investor blog and podcast) has shown that advisor fees alone can cost a typical (i.e. not high income) investor literally millions over their lifetime.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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