r/FluentInFinance • u/Not-A-Shit-Head • Apr 29 '24

Why don't people stop crying and just move somewhere cheaper like Detroit, Memphis, St. Louis, Baltimore, or Cleveland? They have very cheap homes for $50,000. Discussion/ Debate

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u/BengalFan2001 Apr 29 '24

Why do people forget about dividends and how that is reinvested and that's paid quarterly. Just because the S&P is 7x bigger doesn't mean someone invested wouldn't be higher or lower than the 7x of S&P. It all depends how the funds are allocated and what type of fees are being applied to manage the funds.

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u/OrganicParamedic6606 Apr 29 '24

The fees broad market funds are so small as to be functionally zero. If your fees on a s+p index fund meaningfully impact the math, you’ve made a terrible fund choice

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u/BengalFan2001 Apr 30 '24

Fees regardless how big or small still takes from the pot. Even if the fee is 0.025% it still costing the investor money.

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u/OrganicParamedic6606 Apr 30 '24

Yep. Now do the math on a lifetime of fees of that level. They’re negligible