I want to be clear about something - there is a 1% that is hurting millions of Americans financially year after year. It's something I feel is important enough to share again.
I wrote about this 10 months ago when steemit was 1/8th the size it is now. Hopefully this info can help many more given the large community we now have.
This 1% is....
Cutting into the retirement savings of people by upwards of 25% and shaving years off how long they can live on that money.
Worst part – people can easily avoid this 1% killer
The 1% is Investment Fees!
Whether it’s mutual funds, 401(k) programs or even index funds. Millions of people are paying 1% more in fees than they should be. For the same service they would get either way!
The bottom line - paying 2% fees to have money invested in mutual funds or the like is leaving money on the table. You must re-evalute that and move your money into funds that will only cost you 1% in fees.
Let’s take a quick look at what a 1% difference will make over the course of someone’s working years.
Look at the following scenario:
- Starting 10k investment
- Invest additional 10k each year for 30 years
- Average annually return of 8% (essentially market returns)
Fund 1 = 1% fees
Fund 2 = 2% fees
See the difference?
The person in fund 2 gave up $177,424 (an additional 25% return lost to fees)
The higher fees hurt your investments by taking more money out of your investing pool, but they also negate the returns you would have made on those additional dollars too!
It’s a double whammy to your financial success!
If you want to run scenarios to see how much different percentages will impact your returns - the SEC Fund Calculator can be found at: https://www.sec.gov/investor/tools/mfcc/holding-period.htm
Don’t let the 1% kill your financial future
Best Regards,
Disclaimer - The content in this post is for informational purposes only. Consult your financial professional when making investment changes.
Very good advice put out there plain and simple. People often think about how much a difference 1% can make in the long run (me included). Thanks for the reminder!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yup - a small amount can certainly add up!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by scaredycatguide from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
There's always a cost entrusting your wealth to others - sometimes much more than a few percentage points. Much better to educate yourself and take responsibility for your own financial future. Great post.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Could not have said it any better!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
awesome info
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks buddy!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
scaredy do you know how many people are currently in steemit or know who or where to find out? Took my money out of mutual funds and made my mattress higher.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
No need for a boxspring lol. There are plenty of places to grab the data, but probably easier to look at @elyaque daily report showing that and alot of other good info. We are over 240k users...crazy we had 35k last summer.
Here his report for today: https://steemit.com/steemit/@elyaque/daily-steem-report-july-5th-steem-1-77usd-862-new-accounts
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you Thank you... checked @simonjay but hard to read the grafts, even when I blow them up. Looked like they gained 100,000 in about 5months, WOW...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Absolutely. Great post. Gotta compound that 1-2% over decades to see the true impact. Furthermore, you can get near zero fees depending on your employer's offerings! Pic from one of my own fund's prospectus:
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Heck yeah - these days NO ONE should be paying 2% in fees when you get things for sub 1%
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Wait, so are you saying do not invest in a 401k? What investments do you recommend?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
401k, mutual funds, etc. are fine. Just check what fees they are charging.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you crypto, yes? Perhaps, just maybe for a bit of time, we can bypass conventional investing and wave our hand by to the 1%, if not just for a while. If I am missing your point, sorry.
By the way, I have thought about shipping. I'll keep you posted
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes - crypto is a great way to avoid almost all fees! It's a percentage of my investment portfolio, be it a small one but it will grow as I gain more steem. :-)
And sounds good!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I see you got minnow support below. Say what? You're a whale from my vantage point. LOL
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
First - a whale, I wish. Second, I think it's hazard pay from being here when we were treated like coal mine workers lol. And last, I hook minnows up in discord every night :-)
Dave, if you are not part of the PAL room in discord, check it out and get yourself some minnow support too! https://discord.gg/Y5Rcz
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Cryptopay - ORDER BITCOIN DEBIT CARD and Wallet with advantages 😃 NFC 2.5 $ iphone https://steemit.com/card/@happycoin/cryptopay-order-bitcoin-debit-card-and-wallet-with-advantages 😎
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Nice post!! People should invest wisely when they investing for retirement.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
that 1% can have a big impact
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations! Great post
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I appreciate your advice. Thanks for sharing.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Wow I never took this into consideration until now!! Thank you scaredycat!!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Well, it isn't 1% that is killing it for you if you manage to get 8% interest. Not investing is what kills it. The problem is more clear if you get say 5% interest and pay 1% fee from that. That is where you need to consider switching to that index fund which has minimal fees and grows at 8% on average.
But again, most don't invest and that is the biggest problem.
Anyway good article to wake people to the truth of fees :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Well, regardless of your return an extra 1% adds up to a nice chunk of money over one's career. But yes, not investing at all is much much worse.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for this. I find your posts so easy to understand and simple to follow. You are a good teacher Mr @scaredycatguide
This is something i practice myself. I scrutinize every, single cost on every account I have, and take out the unnecessary
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you very much for your advice. I will follow you because your articles are worth gold. Good job
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit