Cheaper than Vanguard

[heyyou]

that's $400 per year on a $1 million portfolio, and you get it for spending 15 minutes online.... And that $400 every year turns into $27K over 30 years, compounded at 5%.

Who has had or will have a million $ portfolio for thirty years?

 

[samclem]

I don't care what their motivation is. All that matters is the cost to me.

If it's not in an IRA, etc, then you should care about the fees now and decades ahead, because selling can be very expensive tax-wise. A relatively common tactic for less scrupulous companies is to waive fees and lower ERs initially to get a bunch of people in the fund. After a few years the waivers end and the costs go up..Try to get out and you may pay bog CapGains taxes. Best bet is to go with a company that is committed to low cost as a central tenet of their business.

 

[mrfeh]

If it's not in an IRA, etc, then you should care about the fees now and decades ahead, because selling can be very expensive tax-wise. A relatively common tactic for less scrupulous companies is to waive fees and lower ERs initially to get a bunch of people in the fund. After a few years the waivers end and the costs go up..Try to get out and you may pay bog CapGains taxes. Best bet is to go with a company that is committed to low cost as a central tenet of their business.

I use Fidelity's total US market fund, and I'm not going to switch just to save a couple basis points.

That being said, if I was investing in total market today, I'd be using these iShares funds. Given the direction of fees, I'd be shocked if the ER of this fund would ever be above .05.

If it's a loss leader for iShares, that's fine by me, because I wouldn't buy anything of theirs that isn't an index fund.

 

[jetpack]

Who has had or will have a million $ portfolio for thirty years?

Well, I've had one for ten years now... Hope it can stay with me another 40


Sent from my iPhone using Early Retirement Forum

 

[mpeirce]

Who has had or will have a million $ portfolio for thirty years?

This is EARLY-retirement.org, so many folks here have a nice pile of assets and many years to enjoy them.

 

[ERD50]

Who has had or will have a million $ portfolio for thirty years?

Well, I've had one for ten years now... Hope it can stay with me another 40 ...

Well, if you start with $1M, draw 3.5% and adjust for inflation each year for 40 years, there is a good chance you will have more than $1M at the end. The historical average was over $3M.



FIRECalc: A different kind of retirement calculator

an average at the end of $3,099,196. ... FIRECalc found that 3 cycles failed, for a success rate of 97.1%.

I'm not sure why heyyou is questioning this?

-ERD50

 

[Olbidness]

My FIDO 401K 500 index fund has an expense ratio of 0.02 and I've wondered if my employer subsidizes the expense. My Vanguard 401K 500 index fund has an expense of 0.05 an thought that was rock bottom.

 

[hnzw_rui]

My FIDO 401K 500 index fund has an expense ratio of 0.02 and I've wondered if my employer subsidizes the expense. My Vanguard 401K 500 index fund has an expense of 0.05 an thought that was rock bottom.

Vanguard Institutional Index Fund Institutional Plus VIIIX (S&P 500) has ER of 0.02%. Of course, it requires minimum investment of $200M.