In the world of investing, there is a fundamental law of physics that is rarely discussed: the devastating impact of compounding fees over long periods of time. Even a seemingly insignificant 1% or 2% annual management fee can confiscate the vast majority of an investor's absolute wealth over a multi-decade horizon.
We have built this interactive tool to demonstrate exactly how much capital is lost to traditional fee structures. Adjust the inputs below to see the mathematics of compounding in action.
Wealth with No Fees
$10,062,657
Wealth after Traditional Fees
$6,614,366
Capital Lost to Fees
$3,448,291
You Keep: 66%
Lost: 34%