OK, ok, not a gazillion but quite a bit. Roughly $45,000 in fees from now until I turn 60. If I extrapolate it out to say age 90 (I plan on a long life!) they helped me save over $400,000.
Let’s back up the story. One of my goals for this year was to test out Personal Capital, currently I have a Mint and Excel workflow that I follow for budgeting. Right now, I am going to say I like my Mint-Excel workflow more than Personal Capital for monthly budgeting…but, I am totally digging Personal Capital for investments. Anyways, after a month or so of passively playing around with Personal Capital, I had a slow Friday at work, and I decided to dig around into it more. Primarily I wanted to check out their Investment Check-up and Retirement Fee Analyzer. And all I have to say is — I LOVE YOU PERSONAL CAPITAL!!!!
Mr. SSC and I have a variety of retirement funds – among them are two 401ks, a Rollover and a Roth IRA. In my previous life, I thought anything with a fee of 0.75% was acceptable. Honestly, I had never really bothered to sum it all up. Especially since I was just starting out, and only had a few thousand in retirement funds. Anyways – I went into their Retirement Analyzer Tool and was greeted the flowing chart which told me I would be losing $114,000 to fees by the time I was 60.
WHOOOOOA NELLY! $114,000 in fees!?!? I mean, it is wonderful to have funds to put my money in and I appreciate all the hard work those fund managers do to grow my money… but that is over two years of retirement income! My outrage at seeing all these fees summed up so succinctly in a beautiful chart, even at the relative low average fee rate of 0.19%, had me logging into our 401ks and IRAs and researching some even lower-cost, well-performing index funds. This next chart shows what I did – and all this only took me about 45 minutes to accomplish:
Yeah, 45 minutes of work saved me roughly $839 in fees for this year. As I already mentioned in the beginning – if you extrapolate this out with 7% growth on those funds, I will save about $45,000 in fees by the time I am 60 and can even start tapping into these retirement funds. That is about a year of living expenses. Think about that. I spent 45 minutes moving around some funds when I am 37, and this will result in almost an extra year of living expenses when I’m 60! Maybe I should’ve spent some more time thinking about fees when I was younger, but I didn’t, and I am just so grateful that I stumbled upon that chart in Personal Capital that blew my mind and made me take action!
**Ok – so this is our first run at an affiliate link – since I am so thrilled with Personal Capital right now! So, I guess if you click here, sign up, we can make like $1 or so and maybe if we get five of y’all to sign up we can spurge and take our kids out for Fro-Yo!!!
***Well, apparently this affiliate link doesn’t work anymore – so I’m trying to work that out with Personal Capital! Ahhh… beginner’s luck!