I've had some eye opening financial education lately. I'm no expert, but some of what I've learned I'm gonna share with you guys.

I've always been like many of the posters on here. I didn't understand it, so it was better for me to let someone else manage my accounts. Sounds like good advice.

But wait.

Can any of you quickly recall what your fees are to have your accounts managed? Is it 1%? 2%? What exactly are you paying? Those percentages don't sound like much do they?

What are fees costing you?

Another link if you trust government information

Anyway, so I didn't take the information I was receiving for a fact. I ran my own numbers. I kept it simple and kept to nice round numbers to see what my results were.

I invested my fictional $10,000.00 insurance payoff at the age of 24 in a 401K that advertised they had averaged 6% growth over the last two decades. I didn't put another dime in that account.

I figured 6% growth on $10k over 36 years and retired at a spry age of 60. These numbers are with ZERO fees, meaning I managed my account myself. When I turned 60 years old this account is worth $81,472.52 and represents a very decent growth on my money.

Now, I figured this same information but decided to let someone else manage my money for me. I couldn't be hassled with dealing with it. This company charged me a 1% fee on my money over the same period of time. When I turned 60 years old this account is worth $57,918.16. WHAT? 1% cost me $23,554.36 in profits.

One last time. I figured this same information but decided to let someone else manage my money for me. I couldn't be hassled with dealing with it. This company charged me a 2% fee on my money over the same period of time. When I turned 60 years old this account is worth $41,039.33. 2% cost me $40,433.19 in profits.

Those numbers are with a simple fee and no other charges they may make.

Don't believe it? Run them yourself, it's not hard. Again, I'm no expert. I'm just like the rest of you, I'm just starting to wake up to what is going on.

I'd encourage you to watch these videos. One is long, but it's also one of the most prominent financial minds of our time talking, so I pay attention.







The bottom line is this guys. Educate yourself and learn to shelter your money and keep your fees in your own pockets.

I had my own reasons for no longer investing in these type accounts. I started looking and realized how stupid I was about money. How I thought about it, spent it, saved it, invested it. I'm learning and will attempt to leave a legacy of knowledge for my son for his future.

Your government doesn't want you to know these things. Your schools don't either. They have made a habit of teaching you how to dissect a frog but not how money actually works. My son is in a finance course at one of the best high schools this state has to offer. They were told to pick up a paper and choose a stock and invest $x fictional dollars and keep up with it.

I asked him how he was taught what to invest in. Nothing. Just told to randomly pick. No research, no company investigation, no history, nothing. Just pick. That's your school economics and finance courses at work and we wonder why there is so much debt and so little money intelligence.

The disservice we are doing to our children is a tragedy. I'm done being a victim to it and won't allow my family to be victims to it any longer.

Sorry for the rant. I'm a bit passionate about the subject right now.