#5
Paying High Fees
1% fee = $300K lost over 30 years. Index funds beat 85-90% of managed funds. VTI: 0.03%.
A 1% annual fee can drain over $300,000 in lost returns from a $500,000 portfolio over 30 years at 7% growth, making it far more expensive than the 0.03% charged by index funds like VTI or VOO. This outperforms #5 (Paying High Fees) in its devastating cumulative impact. Jack Bogle proved low-cost funds beat 85-90% of active managers over 15+ years. Yet average US fund fees are 0.44%, plus 1-1.5% to advisors. The fee drag is invisible but staggering.
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