Why do fees matter so much?
Because they are charged on your whole balance every year, and every dollar paid in fees also forfeits the growth that dollar would have earned.
On an illustrative $100,000 invested for 30 years at an assumed 8% a year before fees: a 1% fee consumes about 24% of the potential final value, a 2% fee about 43%, and a 3% fee about 57%.
The real cost of a fee is not the fee. It is the compounding it removes.
Illustration only, using an assumed constant return. Not a forecast.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.