By Ori @FeeX
When you’re dealing with money as a financial institution, there’s going to be a lot of fine print and legalese involved — that seems to be the unfortunate reality with today’s investment providers. Still, there are simpler ways of describing financial terms than the financial institutions would have you believe. For example, an expense ratio. Investopedia breaks it down into a pretty simple definition:
Not hard to understand right? An expense ratio results in a fee for the user — a fee that’s buried within the fund, that makes your returns smaller, and that can compound over time to end up pretty huge.
But check out the definition that this financial institution (that will go, for now, unnamed) put in their glossary:
Guess what this massive paragraph doesn’t tell you: one, that an expense ratio in plain English is a fee that’ll end up costing you in returns, and two, what the the number of the expense ratio is, meaning how much that fee will actually cost you.
Guess who will? That’s right, FeeX will! We aren’t huge fans of fine print — we prefer spelling out, in dollars and cents, what you’re actually paying in retirement costs, and how to make simple switches to start saving more. Period!