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Am I the only one who just read that a 1% fee difference can cost you over $100k in retirement?
I was looking at a review for a robo-advisor on NerdWallet and they ran the numbers. Over 30 years, that tiny fee on a $500k portfolio adds up to a massive loss in compound growth. It makes me think low-cost index funds are the only way to go, but maybe active management is worth it for some people? What's your take on fees versus potential returns?
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finleybutler6mo ago
Honestly that "tiny fee on a $500k portfolio" line is what gets me. People see 1% and think it's nothing, but it's a huge chunk of your money working for someone else. Tbh I've never seen active management consistently beat the market enough to justify those costs over decades. What kind of returns would an active manager need to get for you to feel like the fee was actually worth it?
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spencer3776mo ago
What, like a magic trick?
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