bright eyed
Thinks s/he gets paid by the post
- Joined
- Jan 4, 2007
- Messages
- 1,891
Ok,
I'm checking to see if I am running the calculations correctly...I'm working with my finance person to make the case for lower fee options in our 403b.
As I said before, our wrap fee is 1.2 on top of the individual fund fees which are .5 and up - most of them over .8
So I took my current balance of $40k, calculated what i would make at 10% interest, plus annual contribution (starting at 13k this year and increased annual by 2k per year) and in 20 years that made $1,552, 886
Then, i calculated what i would make, minus the fees - i used a 2% calculation since most of the funds are around .8 fee.
For the fee scenaraio - I took my balance, added 10% interest, added my annual contribution, calculated the fee and subtracted the fee...each year.
In 20 years, the total balance would be $1,174,847 a difference of $378,040.
Was my calculation correct?
I'm checking to see if I am running the calculations correctly...I'm working with my finance person to make the case for lower fee options in our 403b.
As I said before, our wrap fee is 1.2 on top of the individual fund fees which are .5 and up - most of them over .8
So I took my current balance of $40k, calculated what i would make at 10% interest, plus annual contribution (starting at 13k this year and increased annual by 2k per year) and in 20 years that made $1,552, 886
Then, i calculated what i would make, minus the fees - i used a 2% calculation since most of the funds are around .8 fee.
For the fee scenaraio - I took my balance, added 10% interest, added my annual contribution, calculated the fee and subtracted the fee...each year.
In 20 years, the total balance would be $1,174,847 a difference of $378,040.
Was my calculation correct?