1% Fee Cut = 10 More Years of Money
A 1% fee cut can dramatically increase long-term wealth by letting more of your returns compound for you, not your fees.
Even a seemingly small 1% fee reduction can meaningfully increase your net returns when compounded over decades. More of your money remains invested, working for you—often translating to years of additional retirement income.
Effect of Fees on Returns
- Fees directly reduce your net return
- 7% gross return minus 1% fee = 6% net
- Lower fees preserve compounding
Compounding Power
- Returns generate returns over time
- Fee cuts amplify compounding effects
- Greater long-term ending values
Illustrative Example
Portfolio with a 7% average annual return paying 1% in fees nets 6%. Reducing fees by 1% increases the net return to 7%. Over a long time horizon, this difference compounds into a much larger portfolio and potentially more years of sustainable retirement income.
With 1% Annual Fee
- 6% net return
- Lower ending balance
- Fewer years of sustainable withdrawals
With 0% Additional Fee (1% cut)
- 7% net return
- Higher ending balance
- Potentially ~10 more years of income
Impact on Retirement Planning
Fee Reduction Benefits
- More comfortable retirement
- Larger nest egg
- Possibility to retire earlier
Monitor and Adjust
- Review fees regularly
- Align with goals and risk
- Optimize diversification and risk
Professional Guidance
Fee evaluation and optimization should be tailored to your situation. A financial professional can help analyze your fee stack, recommend lower-cost alternatives, and design a plan aligned with your objectives and time horizon.
Ready to Cut Fees and Extend Your Money's Lifespan?
Our team can help you quantify your fee impact and implement strategies to reduce costs while keeping your plan on track.