You pick some solid mutual funds, then you essentially set and forget your investments.
However, these mutual funds come with fees, and Personal Capital shows us just how much.
Even if they arent actively managed, mutual funds still include fees, orexpense ratios.
The brokerage firm that curates the fund (like Vanguard or Fidelity or Ameritrade) charges this fee.
Its usually a small percentage, but it can add up.
Personal Capital analyzed eleven of the major firms to rank just how much they charge customers.
Merrill Lynch came in at the highest, with a 0.68 percent fee.
Scottrade was the lowest at 0.17 percent.
There are a few things keep in mind when looking at these numbers.
Finally, its tough to avoid paying any fees at all when you invest.
Paying an expense ratio sort of comes with the territory of buy and hold investing.
Personal Capitals white paper also includes what the popular firms charge for doing this, on average.
If youre paying this fee, you want to double-check youre getting your moneys worth.
If the answer is no, then move your money!
Its much easier than you think.
For more detail, check out Personal Capitals paper.
Financial Samurai also explains these fees in more detail at the link below.
The Real Cost of Fees| Personal Capital viaFinancial Samurai
