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Speaker 1: Welcome to Before Breakfast, a production of I Heart Radio.

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Speaker 1: Good Morning. This is Laura, Welcome to the Before Breakfast podcast.

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Speaker 1: Today's tip is that little fees on investments can add up.

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Speaker 1: You want to be sure that your money is working

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Speaker 1: hard for you and that you get as good of

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Speaker 1: returns as possible. To help me with this tip, I

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Speaker 1: invited Joel and Matt from the How to Money podcast

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Speaker 1: to share strategies. They're with me here now as they

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Speaker 1: have been for a few episodes this week. So Joel

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Speaker 1: and Matt please take it away. Thanks Laura, and let's

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Speaker 1: talk about fees because everyone wants to get rich quick

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Speaker 1: scheme that might actually work, but the problem is those

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Speaker 1: schemes never paying out in reality. And yeah, it'd be

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Speaker 1: great if just one little hack could save you huge

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Speaker 1: chunks of money in one fell swoop, if just a

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Speaker 1: little bit of effort could create these massives als. But

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Speaker 1: the truth is that it's typically a lot of little,

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Speaker 1: small financial leaks that are sinking our ships, perhaps dozens,

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Speaker 1: But there is one thing that might be costing you

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Speaker 1: thousands or potentially hundreds of thousands of dollars over the

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Speaker 1: course of your life. And the truth is there's there's

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Speaker 1: something you can do to rectify that situation, and it's

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Speaker 1: not terribly difficult. What we want you to do is

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Speaker 1: to swap your high fee funds for their low cost alternatives.

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Speaker 1: You know it. Yeah, whether you are investing in a

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Speaker 1: retirement or within a brokerage account, lowering the fees that

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Speaker 1: you pay could save you a ton of money over

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Speaker 1: your investing lifetime. So let's dive into some actual numbers

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Speaker 1: here to illustrate the point. Let's imagine you are investing

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Speaker 1: five a month, uh, and you're paying a one percent fee. Well,

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Speaker 1: you might be shocked to hear this, but you are

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Speaker 1: giving up nearly two hundred and seventy thousand dollars in

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Speaker 1: fees over the course of forty years. So that means

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Speaker 1: that instead of retiring with your portfolio sitting at a

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Speaker 1: cool one point two alien, well you'll only end up

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Speaker 1: with nine and twenty eight thousand dollars. I know which

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Speaker 1: one I would rather have. That is a massive difference.

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Speaker 1: And fees, it's just important to keep in mind that

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Speaker 1: they really are the silent killer when it comes to

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Speaker 1: your ability to build wealth. Yeah, it really is incredible

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Speaker 1: just how much fees can rob us blind and yet

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Speaker 1: most of us have no idea what we're paying in

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Speaker 1: fees on the funds that were invested in. It's also

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Speaker 1: just kind of hard to comprehend how much a small

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Speaker 1: fee can actually amount to highway robbery of your retirement

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Speaker 1: account assets over time. Based on the numbers you just

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Speaker 1: gave Matt those examples, that's great, And even on something

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Speaker 1: as basic as like an SMP five funded index fund,

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Speaker 1: which is a great place for lots of investors to turn,

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Speaker 1: the fees can be vastly different depending on which company

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Speaker 1: you're using to make that investment. For example, Google Heim

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Speaker 1: charges more than one and a half percent for their

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Speaker 1: basic SMP five index fund. Compare that to Fidelity, who

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Speaker 1: literally charges no fee at all on virtually identical fund.

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Speaker 1: That's right, Yeah, so let's talk about what you need

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Speaker 1: to do in order to fix the situation. So much

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Speaker 1: of it comes down to which company that you opt

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Speaker 1: to keep your investments with. Are you doing business with

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Speaker 1: a company that prioritizes low fees or not. Some of

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Speaker 1: our favorite low cost companies are Vanguard, Fidelity, Charles Schwab.

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Speaker 1: If your investments are not with one of those companies,

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Speaker 1: we would suggest that you look at your last account

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Speaker 1: statement in order to just figure out and assess how

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Speaker 1: much it is that you're paying. If you can't find

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Speaker 1: that statement, even just doing a a simple Google search

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Speaker 1: of the funds that you are invested in can provide

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Speaker 1: you with that information. You might be in the clear

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Speaker 1: if you're doing business with the company that isn't feeing

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Speaker 1: you to death, but just given how much money is

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Speaker 1: at stake, it is crucial to verify that firsthand. Yeah,

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Speaker 1: and the good news is that in general, across the board,

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Speaker 1: fees are coming down. That's largely thanks to index funds

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Speaker 1: and these giant low cost companies, which is a great

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Speaker 1: thing for investors everywhere. But like everything else, just because

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Speaker 1: are coming down on average doesn't mean that every company

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Speaker 1: got the memo. There's still loads of companies charging fees

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Speaker 1: that aren't in line with the new normal, and every

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Speaker 1: day you continue to do business with a company like that,

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Speaker 1: it's costing you real dollars that your future retired self

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Speaker 1: would love to have. What great advice, Thank you, Joel

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Speaker 1: and Matt. Paying attention to fees can help your nest

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Speaker 1: egg grow faster, and really, who doesn't want that. For

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Speaker 1: more great financial tips, please listen to Joel and Matt

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Speaker 1: at the how to Money podcast and in the meantime,

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Speaker 1: this is Laura. Thanks for listening and here's to making

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Speaker 1: the most of our time. Hey, everybody, I'd love to

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Speaker 1: hear from you. You can send me your tips, your questions,

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Speaker 1: or anything else. Just connect with me on Twitter, Facebook

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Speaker 1: and Instagram at before Breakfast pop that's b E the

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Speaker 1: number four than breakfast p o D. You can also

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Speaker 1: shoot me an email at Before Breakfast podcast at iHeartMedia

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Speaker 1: dot com that before Breakfast is spelled out with all

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Speaker 1: the letters. Thanks so much. Should I look forward to

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Speaker 1: staying in touch. Before Breakfast is a production of I

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Speaker 1: heart Radio. For more podcasts from my heart Radio, visit

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