(Double click the image to expand)These charts illustrate the massive difference in fees charged by active versus passive mutual fund managers. For domestic equity investing, you could reduce fees by more than 50%+ by simply converting to passive investment vehicles.
Advisors/brokers who sell actively managed funds attempt to convince investors that investors cover higher fees with better performance. Review my other posts and you'll see that both academic research and the experience of everyday investors shows that actively managed mutual funds do not consistently outperform the much lower cost alternative passive investments.
Make sure you're aware of the all fees you're paying. If your advisor doesn't give you a clear answer when you ask that question, that tells you it's probably a lot higher than you think.
