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Why the F-word isn't so bad

There's a portion at the end of every mutual fund's annual report that, if you read it closely, just might change your view on fees.

By Chris Carosa | Updated on February 13, 2018
Here's the too-often-ignored mathematical reality: Mutual fund returns already incorporate both brokerage commissions and expense ratios. (Photo: Shutterstock)

There’s a portion at the end of every mutual fund’s annual report that, if you read it closely, just might change your view on “fees,” or, more appropriately, mutual fund operating costs (commonly called the “expense ratio”). But before I get to that, let’s review the game everyone plays when it comes to fees.

Fees are bad. Retirement savers pay too much in fees. Why, did you know that several white papers even say ordinary workers will lose anywhere from $150,000 to more than a quarter-million dollars? That’s maybe a third or more of their earnings. All lost to those terrible fees.

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