Effect of Fees on Investment Results

The table below shows how much $100,000 would have become after being invested in an index fund that tracked the Dow Jones averages for 25 years. Each line in the table represents a historical 25 year period of the Dow.
  • DOW is the ending value of the DOW after the 25 year period.
  • INDEX is the value of your portfolio after the 25 year period, assuming management fees of 0.05%.
  • MUTUAL FUNDS is the value of your portfolio after the 25 year period, assuming standard mutual fund management fees of 0.013.
  • MUTUAL FUNDS + ADVISOR FEE is the amount gained after deducting mutual fund Investment Mananagement fees of 1.3% AND ADVISOR FEES OF 1.0%.
The red numbers represent the amount of money you LOST
because you paid higher fees than necessary.

After 25 yrs, $100,000 became...
25 YEAR
PERIOD

Begin  -  End
DOW
No Fees
INDEX FUND
Mgt Fee = 0.005
MUTUAL FUND
Mgt Fee = 0.013
ADVISOR
+
MUTUAL FUNDS
Fees: 0.023
1900 - 1924217,196191,615156,596 (35,019)121,399 (70,216
1901 - 1925238,677210,566172,084 (38,482)133,406 (77,160
1902 - 1926305,507269,524220,267 (49,257)170,759 (98,765
1903 - 1927598,954528,409431,839 (96,570)334,778 (193,631
1904 - 1928350,093308,859252,413 (56,446)195,680 (113,179
1905 - 1929167,436147,715120,719 (26,996)93,586 (54,129
1906 - 193080,30170,84357,896 (12,947)44,883 (25,960
1907 - 193199,72887,98271,903 (16,079)55,742 (32,240
1908 - 1932111,26298,15780,218 (17,939)62,188 (35,969
1909 - 1933101,58789,62273,243 (16,379)56,781 (32,841
1910 - 1934172,202151,920124,156 (27,764)96,250 (55,670
1911 - 1935215,252189,900155,195 (34,705)120,313 (69,587
1912 - 1936133,536117,80896,278 (21,530)74,638 (43,170
1913 - 1937189,918167,549136,929 (30,621)106,152 (61,397
1914 - 1938266,986235,541192,494 (43,046)149,229 (86,312
1915 - 1939127,625112,59492,016 (20,577)71,335 (41,259
1916 - 1940113,00299,69281,473 (18,219)63,161 (36,531
1917 - 1941156,464138,035112,809 (25,227)87,454 (50,582
1918 - 1942160,692141,766115,857 (25,909)89,817 (51,949
1919 - 1943138,443122,13799,816 (22,321)77,381 (44,756
1920 - 1944262,421231,513189,203 (42,310)146,677 (84,836
1921 - 1945215,560190,172155,417 (34,755)120,485 (69,687
1922 - 1946181,712160,310131,012 (29,298)101,566 (58,744
1923 - 1947183,585161,963132,363 (29,600)102,613 (59,350
1924 - 1948164,644145,252118,707 (26,546)92,026 (53,226
1925 - 1949148,180130,727106,836 (23,891)82,823 (47,904
1926 - 1950168,925149,029121,793 (27,236)94,419 (54,610
1927 - 1951142,530125,743102,763 (22,980)79,666 (46,077
1928 - 195291,83281,01666,210 (14,806)51,328 (29,687
1929 - 1953159,322140,557114,870 (25,688)89,051 (51,506
1930 - 1954292,091257,688210,594 (47,094)163,261 (94,428
1931 - 1955633,899559,238457,034 (102,204)354,311 (204,928
1932 - 1956716,223631,867516,389 (115,477)400,325 (231,542
1933 - 1957585,207516,281421,928 (94,353)327,095 (189,187
1934 - 1958646,514570,368466,130 (104,238)361,362 (209,006
1935 - 1959423,258373,406305,164 (68,242)236,575 (136,831
1936 - 1960402,941355,483290,516 (64,967)225,219 (130,264
1937 - 1961535,250472,209385,910 (86,299)299,172 (173,037
1938 - 1962489,252431,628352,746 (78,883)273,462 (158,166
1939 - 1963580,041511,724418,204 (93,521)324,207 (187,517
1940 - 1964740,053652,889533,570 (119,319)413,644 (239,245
1941 - 1965705,227622,165508,461 (113,704)394,178 (227,987
1942 - 1966750,936662,491541,417 (121,074)419,727 (242,764
1943 - 1967685,064604,378493,924 (110,454)382,909 (221,469
1944 - 1968519,915458,679374,853 (83,826)290,600 (168,079
1945 - 1969429,851379,223309,918 (69,305)240,260 (138,963
1946 - 1970495,263436,931357,079 (79,852)276,822 (160,109
1947 - 1971558,385492,618402,589 (90,029)312,103 (180,516
1948 - 1972472,918417,217340,969 (76,249)264,332 (152,886
1949 - 1973301,328265,838217,254 (48,583)168,424 (97,414
1950 - 1974355,413313,552256,249 (57,304)198,654 (114,898
1951 - 1975367,883324,554265,240 (59,314)205,624 (118,930
1952 - 1976282,725249,426203,842 (45,584)158,026 (91,400
1953 - 1977285,670252,024205,965 (46,059)159,672 (92,352
1954 - 1978206,317182,017148,753 (33,265)115,319 (66,699
1955 - 1979196,087172,992141,376 (31,615)109,600 (63,391
1956 - 1980174,940154,336126,130 (28,206)97,781 (56,555
1957 - 1981241,297212,877173,972 (38,904)134,870 (78,007
1958 - 1982216,087190,636155,796 (34,840)120,779 (69,857
1959 - 1983178,830157,768128,935 (28,833)99,955 (57,813
1960 - 1984251,541221,915181,359 (40,556)140,596 (81,319
1961 - 1985259,997229,374187,455 (41,920)145,322 (84,052
1962 - 1986297,974262,878214,836 (48,043)166,549 (96,329
1963 - 1987285,240251,644205,655 (45,989)159,431 (92,213
1964 - 1988315,004277,903227,114 (50,788)176,068 (101,835
1965 - 1989272,436240,348196,423 (43,925)152,275 (88,073
1966 - 1990403,609356,072290,997 (65,074)225,592 (130,479
1967 - 1991365,003322,013263,163 (58,850)204,014 (117,999
1968 - 1992400,099352,975288,467 (64,508)223,631 (129,345
1969 - 1993480,119423,570346,160 (77,410)268,357 (155,214
1970 - 1994608,150536,523438,470 (98,053)339,919 (196,604
1971 - 1995722,896637,753521,200 (116,553)404,054 (233,699
1972 - 1996773,184682,119557,457 (124,661)432,162 (249,956
1973 - 19971,080,595953,323779,097 (174,225)603,986 (349,336
1974 - 19981,876,0321,655,0741,352,599 (302,474)1,048,587 (606,487
1975 - 19991,277,8771,127,369921,336 (206,033)714,255 (413,114
1976 - 20001,007,141888,520726,138 (162,382)562,930 (325,590
1977 - 20011,007,141888,520726,138 (162,382)562,930 (325,590
1978 - 20021,297,8611,145,000935,744 (209,255)725,425 (419,575
1979 - 20031,285,3821,133,990926,747 (207,243)718,450 (415,540
1980 - 20041,106,546976,218797,808 (178,410)618,491 (357,726
1981 - 20051,410,5431,244,4091,016,986 (227,423)788,407 (456,003
1982 - 20061,245,9791,099,228898,338 (200,890)696,426 (402,802
1983 - 2007695,672613,736501,572 (112,164)388,838 (224,898
1984 - 2008862,343760,777621,740 (139,036)481,997 (278,780
1985 - 2009794,973701,341573,167 (128,174)444,341 (257,000
1986 - 2010717,414632,917517,248 (115,669)400,990 (231,927
1987 - 2011745,548657,738537,532 (120,205)416,716 (241,022
1988 - 2012714,262630,136514,975 (115,161)399,228 (230,908
1989 - 2013711,450627,655512,948 (114,708)397,657 (229,999
1990 - 2014798,158704,151575,463 (128,688)446,121 (258,030
1991 - 2015649,833573,296468,523 (104,773)363,217 (210,079
The red numbers represent the amount of money you LOST
because you paid higher fees than necessary.

Dont believe it?

Click on any 25 year period to see the detail for those years.

Conclusion...

Fund your Roth IRA with Vanguard's Total Market Index Fund (VTI).
Then keep your money in VTI until it's needed.