Topic: Investment Fees in a Stagnant Market
Correct Answer: #3, $140,269
You pay 1.5% a year for 10 years. But remember, it’s charged annually so you can’t just do $15,000 a year x10; the “good” news is that as your nest egg steadily shrinks… so does the fee you pay your inept money manager.
As you can see, it’s crucial to make sure you’re paying a money manager more than they can return in profits. Even a small fee can erode your nest egg in a flat market — or accelerate declines in a downturn.
It should go without saying that paying a flat fee on a large amount will save you more money, and that flat fees also don’t erode your funds in a choppy or stagnant market.
If you’re looking for the best place to compare investment fees and keep more of your money…
… Check out the InvestorPlace broker center to compare transaction costs among leading platforms.
