    Mutual fund expenses do matter. If you pay higher expenses, you are keeping… and compounding, less money over time. It may not sound like much, but it certainly adds up. If you are paying extra for quality service, that’s certainly an individual choice. And maybe an expensive one. Consider:
John Investor: At age 25, John puts $10,000 into a Roth IRA / mutual fund with a 0.6% expense ratio. Over the course of 40 years John has earned a total return of 12% (effectively 11.4%),  and at age 65 he has a portfolio worth more than $750,000.
Kathy Investor: At age 25, Kathy puts $10,000 into a Roth IRA / mutual fund with a 2% expense ratio. Over the course of 40 years Kathy has earned a total return of 12% (effectively 10%), and at age 65 she has a portfolio worth about $452,000.
Which investor would you rather be?
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[…] superior mutual funds with bargain priced management fees such as those offered at Vanguard. Expense ratios are very important, and paying too much for a mutual fund is indeed a losing […]