Comment on Ask HN: Where do you keep your 401k investments?parentComments−monroewalkerOP2yWhat fees does betterment have if any? What allocations have you opted for?−zackify2y.25% on top of any investments you have through them, on top of the fund expense ratio https://www.betterment.com/pricingThat is 62k gone to fees assuming:12k start, 12k put in per year. for 30 years at 7%.−desmosxxx2yPeople don't realise that the opportunity cost of those fees is compounding money.In your example that 67k is 4.8% of your investments. And that's not including the fees of the ETF or mutual funds you get invested in.I would never even think about touching this service - why would anyone use this?−fragmede2yBecause it's easy. If someone's eyes glazes over before you get to the third Q in QQQ, and they're not going to entertain a conversation over Roth and 401k, some place to just money over to for retirement is very attractive.
Comments
What fees does betterment have if any? What allocations have you opted for?
.25% on top of any investments you have through them, on top of the fund expense ratio https://www.betterment.com/pricing
That is 62k gone to fees assuming:
12k start, 12k put in per year. for 30 years at 7%.
People don't realise that the opportunity cost of those fees is compounding money.
In your example that 67k is 4.8% of your investments. And that's not including the fees of the ETF or mutual funds you get invested in.
I would never even think about touching this service - why would anyone use this?
Because it's easy. If someone's eyes glazes over before you get to the third Q in QQQ, and they're not going to entertain a conversation over Roth and 401k, some place to just money over to for retirement is very attractive.