See how management fees erode investment returns over time. Compare fee structures side by side.
| Period | No Fees | Scenario A | Scenario B |
|---|
Even small fee differences compound dramatically. A 1.5% difference on a large portfolio over 20 years can cost hundreds of thousands.
Investment fees are one of the few variables you can control, and their impact over long time horizons is staggering. A 1% annual fee does not simply reduce your return by 1%; it compounds against you year after year.
Consider this: on a 1,000,000 portfolio earning 8% gross returns over 25 years, a 0.5% fee leaves you with approximately 5,430,000, while a 2% fee leaves you with approximately 3,390,000. That 1.5% fee difference cost you over 2,000,000.
This does not mean the cheapest option is always best. Some managers deliver alpha that justifies higher fees. The key question is whether the net-of-fee return exceeds what you could achieve with a lower-cost alternative.
Need help interpreting these numbers or applying them to your situation?
Speak With Our Team