Understanding Vanguard Index Funds
A Vanguard index fund is an investment fund that matches the performance of the entire stock market (like the S&P 500) rather than trying to beat it. Because it doesn't require expensive managers picking stocks, index funds have very low fees—typically around 0.04% compared to 1% for managed portfolios.
The True Cost of Your Advisor Fee
Total Opportunity Cost Over Years:
$0
This is the amount of money you are loosing by not having your money in a Vanguard index fund
Portfolio Growth Over Time
Cumulative Fees Paid Over Time
Key Insights
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Direct Fees: You'll pay more in advisor fees over years.
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Lost Growth: Those fee dollars would have grown to in Vanguard VTSAX.
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What Your Advisor Must Deliver: To justify their fee, your advisor must beat Vanguard's return by annually. Most don't.