You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Bonus Tip: Continued…
30 Years 30 Years 30 Years
So, How much can fees affect you?
Let’s look at this scenario. We have Amy on the left, Laura in the middle and Lisa on
the right.
All 3 of them invested $100,000. All 3 of them are getting the same exact return, 8%.
And, all 3 of them are not adding any more money to the account. Doesn’t matter
what they are investing in. We are just doing an apples-to-apples comparison. The
ONLY variable will be the fee.
So, Lisa on the right is paying 2% in fees. After 30 years her account has grown to
$574K.
Now let's look at Laura, again everything is the same other than the fee she is paying,
which is 1%. My guess is that you are paying more than a 1% fee.
So, after 30 years, paying 1% less than Lisa, she has $761 thousand dollars. That one
percent cost her $187 thousand dollars.
39
© 2020 Hilton Financial Group, LLC
Change language