Read the screenplay: FANNIEGATE — $7 trillion. 17 years. The biggest fraud in American capital markets.

Financial Calculator

How Much Are Fees Eating Your Returns?

I ran a hedge fund. I charged 2/20. I know exactly how the fee game works. Let me show you what Wall Street doesn't want you to calculate.

Your Portfolio

$

Total invested across all accounts

$

How much you add per year

yrs

How many years until you need the money

%

7% = historical S&P 500 (real)

%

Add your own fee scenario

The Most Expensive vs. Cheapest Fee Scenario Costs You

$507.0K

over 30 years — that's money that went to fees instead of your retirement

Side-by-Side Comparison

Fidelity Zero

Best

Zero expense ratio (yes, really) — loss leader but it works

Fee:0%
Final Balance:$1.35M
Lost to Fees:$0

Vanguard Index (VOO)

S&P 500 index fund — the gold standard of low-cost investing

Fee:0.03%
Final Balance:$1.34M
Lost to Fees:$9,618

Custom (0.5%)

Your custom fee scenario

Fee:0.5%
Final Balance:$1.20M
Lost to Fees:$151.3K

Financial Advisor

Typical 1% AUM fee — "but I provide value" (do they?)

Fee:1%
Final Balance:$1.06M
Lost to Fees:$284.9K

Hedge Fund (2/20)

Worst

2% management fee — I used to charge this. I know the game.

Fee:2%
Final Balance:$840.8K
Lost to Fees:$507.0K
🎤

Glen's Rant on Fee Transparency

I'm going to be honest with you because I've been on both sides of this equation. I ran a hedge fund called Global Speculation. I charged management fees. I know exactly how this works.

Here's the dirty secret: the vast majority of financial advisors and fund managers cannot consistently beat a simple S&P 500 index fund. Over any 15-year period, about 90% of actively managed funds underperform the index. They're charging you 1-2% per year for the privilege of losing to a fund that charges 0.03%.

The math above isn't theoretical. It's the difference between retiring at 60 with $1.35M or $840.8K. That's $507.0K that went to someone else's retirement instead of yours.

My advice? Open a Vanguard or Fidelity account, buy a total market index fund, set up automatic contributions, and never look at it. Total annual cost: 0.03%. Total effort: 15 minutes. Total outperformance vs. the average advisor: priceless.

— Glen Bradford, reformed hedge fund manager turned index fund evangelist

Final Balance After 30 Years

Starting with $100.0K, adding $6,000/yr at 7% return

Fidelity Zero(0%)
$1.35M
$1.35M
Vanguard Index (VOO)(0.03%)
$1.34M
$1.34M
Custom (0.5%)(0.5%)
$1.20M
$1.20M
Financial Advisor(1%)
$1.06M
$1.06M
Hedge Fund (2/20)(2%)
$840.8K
$840.8K

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