Fees Matter

The financial services industry is built upon a "Matrix  of "forever-fees" like expense ratios, advisory-fees, commissions, transaction costs, and the myriad of fees charged by annuity products.  When it comes to investing, fees might seem like a small percentage, but over time, they can take a significant bite out of your returns. Every dollar paid in fees is a dollar that’s not compounding for your future. High fees erode wealth, making it harder to achieve your financial goals, especially when markets are volatile or returns are modest. 

By minimizing fees, investors keep more of their hard-earned money working for them. Index based mutual funds and low-cost ETFs, for example, offer broad market exposure at a fraction of the cost of actively managed funds. Even seemingly small fee reductions—like moving from a 1% annual fee to 0.03% (the fee charged on Vanguards Total Stock Market Index VTI)—can lead to tens or even hundreds of thousands of dollars in additional growth over decades. Every basis point saved on fees improves your long-term returns without requiring additional risk. 

A disciplined, low-cost investment approach ensures that more of your portfolio benefits from the power of compounding. Instead of paying for high-cost strategies that may not consistently outperform, investors should focus on controlling what they can—fees, taxes, and diversification. Keeping costs low is one of the simplest and most effective ways to build wealth over time.