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Investment版 - Small Annual fee may cost big for your investment return

Returns排名和Performance values不符合Fidelity 的exp ratio 是vanguard的十倍？
401k YTD投资机会。6% annual return (转载)
Fund的annual return怎么计算的？2 M现金
Why we need IRA?Return/risk/time calculator

[合集] 再问VUL[合集] 401(k) - Fidelity Funds的问题

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 g****d发帖数: 88 1Here is the formula to caculate the difference with or without fee. If we assume annual return rate before fee is X and annual fee is Y, after Z years, the total return for an account without fee is: (1.0 + X)^Z - 1.0 The return with the fee is: (1.0 + X - Y)^Z - 1.0 Sample 1: X=5%, Y=2%, Z=30 years return without fee = 332%, return with fee = 143%. Cost of fee = 57% of your total return. Sample 2: X=8% Y=1%, Z=30 Years return without fee = 1006%, return with fee = 574%. Cost of fee = 43% of your total return. d*****r发帖数: 273 2I think the formula should be ((1 + X)(1-Y))^Z - 1.0 because the fee is charged based on the total amount invested, (1+X)^Z gives the total amount. Sample 1: X=5%, Y=2%, Z=30 years return without fee = 332%, return with fee = 136%. Cost of fee = 59% of your total return. Sample 2: X=8% Y=1%, Z=30 Years return without fee = 1006%, return with fee = 644%. Cost of fee = 36% of your total return. No matter which formula to use, we come to the same conclusion: small annual fee may cost big for your investment return. Z 【在 g****d 的大作中提到】 : Here is the formula to caculate the difference with or without fee.: If we assume annual return rate before fee is X and annual fee is Y, after Z: years, the total return for an account without fee is:: (1.0 + X)^Z - 1.0: The return with the fee is:: (1.0 + X - Y)^Z - 1.0: Sample 1: X=5%, Y=2%, Z=30 years: return without fee = 332%, return with fee = 143%.: Cost of fee = 57% of your total return.: Sample 2: X=8% Y=1%, Z=30 Years t*m发帖数: 4414 3也要考虑trading 成本吧。 就算每年trade 100次，消耗\$500 这些钱如果去买spartan sp500 index fund, expense 0.001, 30 年，年均return 8% 等比数列求和，三十年大约消耗\$55600. 如果每年投资量不大，比如 taxable account投 2W, 这500也 2.5% 了。 Z 【在 g****d 的大作中提到】 : Here is the formula to caculate the difference with or without fee.: If we assume annual return rate before fee is X and annual fee is Y, after Z: years, the total return for an account without fee is:: (1.0 + X)^Z - 1.0: The return with the fee is:: (1.0 + X - Y)^Z - 1.0: Sample 1: X=5%, Y=2%, Z=30 years: return without fee = 332%, return with fee = 143%.: Cost of fee = 57% of your total return.: Sample 2: X=8% Y=1%, Z=30 Years t*m发帖数: 4414 4这个expense是按天算的。所以应该是 净return率, W 在您二位说的两个数之间。 gives the total amount. annual fee may cost big for your investment return. after 【在 d*****r 的大作中提到】 : I think the formula should be: ((1 + X)(1-Y))^Z - 1.0: because the fee is charged based on the total amount invested, (1+X)^Z gives the total amount.: Sample 1: X=5%, Y=2%, Z=30 years: return without fee = 332%, return with fee = 136%.: Cost of fee = 59% of your total return.: Sample 2: X=8% Y=1%, Z=30 Years: return without fee = 1006%, return with fee = 644%.: Cost of fee = 36% of your total return.: No matter which formula to use, we come to the same conclusion: small annual fee may cost big for your investment return. d*****r发帖数: 273 5You are right. The number is in between of the two calculation. 【在 t*m 的大作中提到】 : 这个expense是按天算的。所以应该是 净return率, W: 在您二位说的两个数之间。: : gives the total amount.: annual fee may cost big for your investment return.: after t*m发帖数: 4414 6这个数可以用天return和 天expense 来算。 先算天return, x 如果年return=0.08, 250 daysper year. (1+x)^250=1.08; x=3E-4; 我不知道 daily expense，y 怎么算法。 我想一种可能的算法是,假设一年250天， spartan index fund expense 0.001/year (1-y)^250 = 1-0.001 => y = 4E-6 您看看这么算对吗？ 【在 d*****r 的大作中提到】 : You are right. The number is in between of the two calculation. g****d发帖数: 88 7Whatever, small annual fee does cost a lot of money, especially in long term investments
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[合集] 算了一下， 非常disappointing的DCA returnWhy we need IRA?

are reported mutual fund returns net of expenses?[合集] 再问VUL

Returns排名和Performance values不符合Fidelity 的exp ratio 是vanguard的十倍？
401k YTD投资机会。6% annual return (转载)
Fund的annual return怎么计算的？2 M现金