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Look for Low Fees and Expenses
Fees and expenses reduce your returns over time. AARP Funds feature low fees and expense ratios in order to help you potentially earn more from your investments.
The average stock mutual fund charges 1.07% of your assets every year.* A low-cost fund might charge as little as 0.50% or less. Over 20 years, the higher fee could reduce your returns on a $100,000 investment by as much as $26,053.00.
| What the fees cost you on an initial $100,000 investment | Pay these fees for a low-cost fund (0.50%) | Pay these fees for a mid-cost fund (1.07%) | The low-cost fund saves you... |
|---|---|---|---|
| 10 years | $7,964 | $16,613 | $8,649 |
| 20 years | $25,310 | $51,363 | $26,053 |
| 30 years | $60,341 | $119,212 | $58,871 |
This table assumes annual returns of 5% a year and includes "foregone earnings," the money you'd make if fees were invested. These calculations came from the U.S. Securities and Exchange Commission's online tool for comparing the cost of owning mutual funds, the SEC Mutual Fund Cost Calculator. You can find the tool by going to the SEC's Web site at www.sec.gov. (Please keep in mind that AARP Funds do not operate, maintain, or have any connection to the SEC Mutual Fund Cost Calculator.)
*Investment Company Institute, 2007 Investment Company Fact Book, 47th Edition, 2007 (asset-weighted average of annual expense ratios and annualized loads for individual funds).
The mutual funds described in this site are sold only to U.S. residents.
Past performance is no guarantee of future results. Investing in mutual funds involves risk, including possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, fees, charges and expenses before investing any money. The prospectus contains this and other important information about the Funds. Please read the prospectus carefully before investing.
These articles are not meant to be a financial plan. A financial plan generally addresses a wide spectrum of financial needs including insurance, savings, investments, tax and estate planning.
While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself, and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is a registered investment adviser and a subsidiary of AARP.
AARP Funds are advised by AARP Financial Inc. and distributed by ALPS DIstributors, Inc. a registered broker/dealer.
AARP Financial Inc. is not affiliated with ALPS Distributors Inc.