Watch Out! Retirement Fees Can Cost You $544,000

Expense ratios (fees) can cost your retirement account a lot of money over time.
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Just a 1% fee from actively managed investments can easily cost you over $500,000 when you retire. This is because the 1% isn't helping with compound interest over the life of the account. And when we're talking about retirement accounts, these can be open for a very long time. I'll explain everything very quickly in this video.
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[@HonestFinance]

Was this video helpful?

[@YuhNinja]

Any reason you changed the interest rate? Is that really how expense ratios work? I figured 1% would mean they just take $4 from every $400 you deposit

[@ankylosis751]

@@YuhNinja think in case of the large compounded money

[@YuhNinja]

@@ankylosis751 If hadnt changed the interest rate, it would be much different final numbers. 1% less deposits is different than 1% less interest rate.

[@HonestFinance]

It’s expensive because that money can’t compound over years . That’s what hurts the most

[@amalias8888]

Vanguard Index Funds are the best way to go....low management fees.

[@HonestFinance]

Yup. I agree 100%

[@Jack-id4qm]

Does Fidelity have retirement fees for their S&P 500 index roth IRA? I havent found a straight answer online.

[@DrizzoMan]

It shouldn't cause the money is already taxed, before investing in a Roth account

[@Jack-id4qm]

@@DrizzoMan many thanks 👍