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  • Writer's picturehooglandaxel

The Silent Wealth Destroyer - Expense Ratios

Updated: Jun 30, 2019

The most common way to invest your money for almost any financial advisor is the through a mutual fund. Funds are a good way to be exposed to many companies at once but not all mutual funds are created equal. Many advisors who hold your money get paid by the funds to invest your money in their funds. After you put your money in the fund you are charged a percentage of that money each day of the year to come to a yearly total, called the expense ratio. Some funds have a very low expense ratio .05% of assets ($0.50 for each $1,000 you have invested) while some have expense ratios as high as 2% ($20 each year for each $1,000 you have invested!) or even higher! Obviously keeping expenses low will increase returns to you!

Here's a video with more information about expense ratios.

As a fiduciary fee-only financial advisor I am not paid by any funds to invest your money. I am only paid directly by you to invest your money for your own future financial growth.

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