So, I've been tinkering with this
retirement calculator. I changed the years to 30, but left everything else alone. The good news is that I have 100% chance of success! Great!However, if I up the expense ratio to 1%, my percentages falls down to 96%, and at 2% ER, it my chances fall down some more to 91%.
Sure, it's only an arbitrary retirement calculator, but it's enough to show that your expense ratio do make a difference!
August 17th, 2009 at 04:47 pm 1250527622
August 17th, 2009 at 05:00 pm 1250528455
I just mentioned recently that Vangaurd's Retirement funds were slightly cheaper than their Life Strategy funds. For essentially the same thing. (Difference was like 0.20 vs. 0.40). Decided to go with the cheaper one for the kids' savings.
I've got some smaller amounts in funds nearing 1% but don't buy anything that cost more than that. Those (funds nearing 1% expense ratios) remain small parts of my portfolio.
It's also why I like T Rowe Retirement. I don't mind researching funds/managing portfolio and all that - rather like it. BUT I can get a slew of expensive managed funds for a much lower expense ratio, that way.
August 18th, 2009 at 03:12 am 1250565171
Isn't it nice to have "virtual" numbers to play with?
We are busy trying to just survive at this point, but it will be fun when we can concentrate on retirement!
August 18th, 2009 at 11:50 am 1250596221