WEBVTT - How to get rich quicker

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<v Speaker 1>Welcome to Before Breakfast, a production of I Heart Radio.

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<v Speaker 1>Good Morning. This is Laura, Welcome to the Before Breakfast podcast.

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

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<v Speaker 1>You want to be sure that your money is working

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<v Speaker 1>hard for you and that you get as good of

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<v Speaker 1>returns as possible. To help me with this tip, I

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<v Speaker 1>invited Joel and Matt from the How to Money podcast

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<v Speaker 1>to share strategies. They're with me here now as they

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<v Speaker 1>have been for a few episodes this week. So Joel

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<v Speaker 1>and Matt please take it away. Thanks Laura, and let's

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<v Speaker 1>talk about fees because everyone wants to get rich quick

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<v Speaker 1>scheme that might actually work, but the problem is those

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

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<v Speaker 1>great if just one little hack could save you huge

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<v Speaker 1>chunks of money in one fell swoop, if just a

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<v Speaker 1>little bit of effort could create these massives als. But

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<v Speaker 1>the truth is that it's typically a lot of little,

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<v Speaker 1>small financial leaks that are sinking our ships, perhaps dozens,

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<v Speaker 1>But there is one thing that might be costing you

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<v Speaker 1>thousands or potentially hundreds of thousands of dollars over the

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<v Speaker 1>course of your life. And the truth is there's there's

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<v Speaker 1>something you can do to rectify that situation, and it's

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<v Speaker 1>not terribly difficult. What we want you to do is

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<v Speaker 1>to swap your high fee funds for their low cost alternatives.

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<v Speaker 1>You know it. Yeah, whether you are investing in a

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<v Speaker 1>retirement or within a brokerage account, lowering the fees that

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<v Speaker 1>you pay could save you a ton of money over

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<v Speaker 1>your investing lifetime. So let's dive into some actual numbers

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<v Speaker 1>here to illustrate the point. Let's imagine you are investing

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

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<v Speaker 1>you might be shocked to hear this, but you are

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<v Speaker 1>giving up nearly two hundred and seventy thousand dollars in

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<v Speaker 1>fees over the course of forty years. So that means

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<v Speaker 1>that instead of retiring with your portfolio sitting at a

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<v Speaker 1>cool one point two alien, well you'll only end up

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<v Speaker 1>with nine and twenty eight thousand dollars. I know which

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<v Speaker 1>one I would rather have. That is a massive difference.

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<v Speaker 1>And fees, it's just important to keep in mind that

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<v Speaker 1>they really are the silent killer when it comes to

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<v Speaker 1>your ability to build wealth. Yeah, it really is incredible

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<v Speaker 1>just how much fees can rob us blind and yet

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<v Speaker 1>most of us have no idea what we're paying in

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<v Speaker 1>fees on the funds that were invested in. It's also

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<v Speaker 1>just kind of hard to comprehend how much a small

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<v Speaker 1>fee can actually amount to highway robbery of your retirement

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<v Speaker 1>account assets over time. Based on the numbers you just

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<v Speaker 1>gave Matt those examples, that's great, And even on something

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<v Speaker 1>as basic as like an SMP five funded index fund,

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<v Speaker 1>which is a great place for lots of investors to turn,

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<v Speaker 1>the fees can be vastly different depending on which company

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

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<v Speaker 1>charges more than one and a half percent for their

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<v Speaker 1>basic SMP five index fund. Compare that to Fidelity, who

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<v Speaker 1>literally charges no fee at all on virtually identical fund.

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<v Speaker 1>That's right, Yeah, so let's talk about what you need

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<v Speaker 1>to do in order to fix the situation. So much

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<v Speaker 1>of it comes down to which company that you opt

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<v Speaker 1>to keep your investments with. Are you doing business with

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<v Speaker 1>a company that prioritizes low fees or not. Some of

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<v Speaker 1>our favorite low cost companies are Vanguard, Fidelity, Charles Schwab.

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<v Speaker 1>If your investments are not with one of those companies,

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<v Speaker 1>we would suggest that you look at your last account

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<v Speaker 1>statement in order to just figure out and assess how

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<v Speaker 1>much it is that you're paying. If you can't find

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<v Speaker 1>that statement, even just doing a a simple Google search

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<v Speaker 1>of the funds that you are invested in can provide

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<v Speaker 1>you with that information. You might be in the clear

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<v Speaker 1>if you're doing business with the company that isn't feeing

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<v Speaker 1>you to death, but just given how much money is

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<v Speaker 1>at stake, it is crucial to verify that firsthand. Yeah,

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<v Speaker 1>and the good news is that in general, across the board,

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<v Speaker 1>fees are coming down. That's largely thanks to index funds

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<v Speaker 1>and these giant low cost companies, which is a great

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<v Speaker 1>thing for investors everywhere. But like everything else, just because

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<v Speaker 1>are coming down on average doesn't mean that every company

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<v Speaker 1>got the memo. There's still loads of companies charging fees

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<v Speaker 1>that aren't in line with the new normal, and every

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<v Speaker 1>day you continue to do business with a company like that,

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<v Speaker 1>it's costing you real dollars that your future retired self

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<v Speaker 1>would love to have. What great advice, Thank you, Joel

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<v Speaker 1>and Matt. Paying attention to fees can help your nest

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

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<v Speaker 1>more great financial tips, please listen to Joel and Matt

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<v Speaker 1>at the how to Money podcast and in the meantime,

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<v Speaker 1>this is Laura. Thanks for listening and here's to making

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

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<v Speaker 1>hear from you. You can send me your tips, your questions,

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<v Speaker 1>or anything else. Just connect with me on Twitter, Facebook

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<v Speaker 1>and Instagram at before Breakfast pop that's b E the

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<v Speaker 1>number four than breakfast p o D. You can also

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<v Speaker 1>shoot me an email at Before Breakfast podcast at iHeartMedia

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<v Speaker 1>dot com that before Breakfast is spelled out with all

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<v Speaker 1>the letters. Thanks so much. Should I look forward to

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<v Speaker 1>staying in touch. Before Breakfast is a production of I

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<v Speaker 1>heart Radio. For more podcasts from my heart Radio, visit

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