Mutual Funds Are Costing Your Retirement In Excess Of One Million Dollars Over ETFs

Mitch Tuchman of MarketRiders.com, discusses with CNN’s Ali Velshi and Christine Roman how mutual fund fees devastate your IRA over many years. Mitch generated a simple list of constants to compare a mutual fund retirement portfolio to an ETF portfolio. What he finds, should make your stomach turn. Mitch took an average 35 year old who chooses to invest $4K per month in their retirement portfolio earning about 7.5% on average. If that person continued this method for the next 41 years, the ETF portfolio would yield them $3.15M, while the Mutual fund portfolio would yield them $2.04M. That investor lost over $1M in retirement savings to fees that many would consider negligible. To add insult to injury, Mitch throws an investment advisor into the mix knocking off almost two million of your retirement to fees.

See the full video below:

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2. ETFs – Are they better than Mutual Funds? TMX Group hosts a roundtable discussion on the fast-growing world of exchange-traded funds
3. ETFs Gaining on Traditional Mutual Funds, Study Finds

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