Investment fees is an important part of your path to financial freedom. One thing you have to watch when investing are the fees. Anytime you purchase a fund, you pay a fee, which is referred to as expense ratio. An expense ratio is the part of your fund used for administrative and other expenses.
To find the expense ratio of a fund, go to Morning Star, and search for a fund. For example, I typed FXAIX in the search box on morningstar.com and this is what came up (see image below). Then I clicked on the fund name to view more details. The expense ratio for FXAIX is 0.015%, which is low.
This blog post from Intentional Money Life, does a great job explaining investment fees and its impact on your portfolio.
To learn more about investments, start here if you are a teen. If you are a college student, trade school student, or early career professional, start here.
This amazing set of visuals showing the hidden cost of fees is from Intentional Money Life.
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