Mutual fund MER calculation - this can't be correct?
Ok so someone told me about mutual fund MERs. Long story short, after alot of research, it dawn on me why banks love selling mutual funds.
If you have a portfolio of mutual funds that you've saved for 25 years from age 20 to 45 with those encouraged monthly withdrawals that the banks make it seems is a gods blessing and it's about say $500,000 and an average MER of 2.20% a year, you pay $11,000 whisked away.
In ten years, you pay $55,000 in fees if you don't contribute anymore?
$55,000 of my hard earned money? That's alot of money?
Can someone confirm this calculation? This is a ball park calculation but it seems wayyyyyy too high?
Anyone?
If you have a portfolio of mutual funds that you've saved for 25 years from age 20 to 45 with those encouraged monthly withdrawals that the banks make it seems is a gods blessing and it's about say $500,000 and an average MER of 2.20% a year, you pay $11,000 whisked away.
In ten years, you pay $55,000 in fees if you don't contribute anymore?
$55,000 of my hard earned money? That's alot of money?
Can someone confirm this calculation? This is a ball park calculation but it seems wayyyyyy too high?
Anyone?
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A guide for the everymans guide to investments
A guide for the everymans guide to investments