How to Money · Wednesday, July 15, 2026
Paul Merriman illustrated the significant long-term impact of seemingly small investment fees, using an example where a 0.5% difference in fees could result in a $1.5 million reduction in retirement funds over a lifetime. He stressed that even a 0.75% commission load on an equity fund can effectively cost investors about 0.5% annually in lower returns over time.
“The difference between eight and eight and a half percent during the accumulation period and six and six and a half percent during the distribution period, that's the half a percent you're talking about is one point five million dollars.”
“A five point seventy five percent commission load on a fund, on an equity fund actually costs you about a half a percent a year in lower expenses over a lifetime.”