No. of Recommendations: 7
Your profile doesn't say, so let me guess that you're 35. And let me guess that you put away $10,000 a year into your managed account. (7.5% is OK, except the market has been doing better than 10% since 2008.)

As for those expenses, let's play out the string. That $10,000 a year, if it returns the long-term historical average of 6.5% over the next 30 years (the time you retire) you would have accumulated $986,000 in your account. If you get that $6.5%, minus the 1.5% fee (now add back in a passive index fund fee of around 0.4%, meaning the change is 1.1%), you would have $798,600.

Again; higher fee = $986,000
Again; lower fee = $798,600

That "extra" 1% can really make a difference. Of course if it's producing better than average results, great. Sadly, more than 90% of funds don't, because they can't beat the fee. And they're trading so much they can't beat the trading costs. And you end up with more capital gains because they're trading far more frequently than a passive fund like an index fund or an ETF.

Stare at the numbers again. Would you rather have an extra $200,000 when you retire, or would you rather your stock broker have it?

I'm sure my made-up numbers are just that, made-up. Plug in the right ones here:
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