Topic: Investment Fees Over Time
Correct Answer: #3, Over $3,300
Compounding 10 years of 10% returns on $10,000, gets you about $25,900. But that, of course, doesn’t account for the burden of fees along the way.
Remember, your fees started out as just $150 a year on your $10,000. But once you have $20,000 you’re paying $300 in fees… and if you stick with this same strategy and expense structure until you have $30,000, you’ll pay $450 in fees annually.
The more you have, the more you pay. That’s how percentage-based fees work, for both money managers and mutual funds.
