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Even a small difference in the fees you pay on your investments can
add up over time. Use this calculator to see how different fees can impact your investment strategy!
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Definitions
- Starting amount
- The starting balance or current amount you have invested. If you haven't started investing yet, set the amount to "$0".
- Additional contributions
- The amount that you plan on adding to your investment on a regular basis.
- Years
- The total number of years you are planning to invest.
- Annualized rate of return
- The annual rate of return for your underlying investment, before any fees are taken into account. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
- Annual investment fee
- The annual fees, calculated based as a percentage of the investment balance, for three different investment options. The higher the fee percentage, the less your investment will grow over time.
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