This is a MUST read for all investors who use mutual funds for their investments. While the value of good investment management has significant value, there has been excessive fees in many funds for a long, long time.
Because many investors can not invest in individual securities for one reason or another - no time, no interest, lack of knowledge, etc, they rely on funds for their investments. Like any convenience item you buy, whether it is financial products or everyday goods and services, there is a cost associated with that convenience decision. There is no free lunch.
Unfortunately, what are seen as small fees, really make huge differences over time. I wrote an article with examples in my linkedin posts.
While the majority of fund investors may not want to or have no interest in understanding the management of those investments, it would GREATLY behoove them to take the time to educate themselves on the FEES they are PAYING! John Bogle, of Vanguard fame, talks a lot about this in his book "Enough".
While the amount you are saving toward retirement is very important, it is equally important to be aware of the "leakage" in your retirement caused by fees. After all, you want a great retirement and the funds to support it. Right?!
