[vdalal]

The difference between 7% & 6% (1% fees) is in fact a LOT higher if one takes compounding into effect.

By Year 40:

* >$500K &

* ALMOST a quarter of the portfolio

When I was starting out, someone in my company's 401k forum mentioned this # (at that time the # was almost 40%, fees have gone down a lot since the early 2000's). And I am glad I paid attention.

I try and pass on this wisdom everytime I can. Now, you can too.

Here is a NerdWallet article on this topic: https://www.nerdwallet.com/blog/investing/millennial-retirem...

AND

My attempt at recreating their math (TL;DR: It matches, almost): https://docs.google.com/spreadsheets/d/1QTa4XBIUgnLCt_lo6x0n...

edit: for formatting

[TuringNYC]

Thanks for the great elaboration on my note. FEES KILL!

All the discussion on this thread of "oh just go with a mutual fund" is insane to me. Even if funds have dropped in price from 1.5% to 1% to .7%, that is a huge number over the course of your life. The only realistic approach is super-low-cost ETFs, but those arent friendly to use or make a portfolio from. So the WealthFront layer is pretty critical IMHO.