Re:Robinhood now valued at $11.2B with new fund backing
by brundolf on Monday August 17, 2020 @05:07PM
(#24192108)
In the years I've been using it the fees have totaled 5.2% of the earnings over that time (current balance - invested, not total account balance). It's not nothing, but personally I place a high value on simplicity and peace of mind in my life, so it's worth it to have a simple and excellent user-experience in the app, as well as the ability to do things like withdraw and deposit with literally the tap of a button.
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Re:Robinhood now valued at $11.2B with new fund backing
by atombender on Monday August 17, 2020 @10:42PM
(#24194740)
5.2% is crazy.
The target date fund I use, SWYJX (Schwab Target 2055 Index Fund) has a net ER of 0.08%. Over 25 years, the difference between 0.4% and 0.08% can be hundreds of thousands of dollars.
Like Betterment, SWYJX an automated portfolio, but one adjusted for age, not some individual profile.
Re:Robinhood now valued at $11.2B with new fund backing
by bobobob420 on Monday August 17, 2020 @11:12PM
(#24194870)
Bruh 5.2 percent what are you doing giving investment advice lmao
Re:Robinhood now valued at $11.2B with new fund backing
by mariomariomario on Monday August 17, 2020 @07:36PM
(#24193567)
You're nuts if you think 5.2% is reasonable. Let's say for simplicity that's 1% per year for 5 years, if you chose VTSAX instead with an expense ratio of 0.04% (yes that's right) you're looking at total fees over 5 years of 0.2% versus 5%
Compound that 30 years out, you would loose hundreds of thousands of dollars for a pretty UI. Forget that, take a day and go setup a Bogleheads [1] portfolio.