That “Tiny” 1% Fee Might Be Stealing Millions From Your Future

(And Why Understanding Your Investments Is the Ultimate Power Move for Women)

Okay, dolls. Let’s talk about something that sounds small… but quietly wrecks your long-term wealth if you’re not paying attention.

A 1% investment fee.

I know. One percent feels harmless. Polite. Almost cute.
Like: “Sure, you can have a bite of my dessert.”

But here’s the truth no one explained to most women (myself included, for years):

That “tiny” 1% can cost you 25–30% of your lifetime wealth.

All because you were never shown the real math behind a “small” 1% fee.

This post is for the woman who:

• Earns great money

• Is already investing

• Has a portfolio… but doesn’t understand it

• And secretly feels like her financial freedom is being managed around her, not with her

Let’s fix that: calmly, clearly, and without confusing investing jargon ruining your day.

Why I Finally Did the Math (And Almost Fell Out of My Chair)

This episode was sparked by a casual conversation with a friend. She asked me:

“How much do you think you’ve saved by investing on your own instead of paying an advisor a percentage?”

So I did some quick, back-of-the-napkin math.

And then I checked it again.
And again.
And again—because the number felt illegal.

Millions. Literal millions.

That’s when it hit me: most women never see this number. They hear “1%,” not what that 1% becomes over 30–40 years.

And when you don’t see the full picture, you can’t make an empowered decision.

The 4 Ways Investment Fees Sneak Into Your Life

Before we talk solutions, let’s get clear on where money is leaking—because clarity is the foundation of financial independence.

1. Advisor Fees (AUM vs Flat Fee)

There are two main ways advisors charge:

• Flat fee: You pay a set dollar amount (monthly or per meeting)

• AUM (Assets Under Management): You pay a percentage of your portfolio, or the amount of money you have invested with an advisor. It's often 1%–1.5%

AUM is the sneaky villain.

Because as your money compounds… the fee you pay compounds with it.

2. Fund Expense Ratios

Every mutual fund or ETF charges a fee called an expense ratio.

• Low-cost index funds: ~0.2%

• High-fee funds: 1%–2% (yes, really)

These fees apply no matter who manages your money.

3. Commissions & Trading Fees

Fees charged for making trades.

Thankfully, the cost of this fee is mostly negligible today.

4. Platform Fees

Fees charged simply for using a brokerage platform (such as Edward Jones or other full-service firms).

Some brokerage firms charge them, some don’t.
Low-cost platforms like Fidelity and Vanguard are known for not charging platform fees at all.

👉 The real damage comes from AUM fees + high expense ratios, because they compound against you over time. So, today, we're going to dive into those.

How a 1% Fee Quietly Eats 25% of Your Wealth

Let me introduce you to Saver Sally (iconic behavior only).

• Earns $150K

• Invests $30K/year

• Starts investing at age 25, retires at 65

• Average market return: 10%

Scenario A: Sally Invests On Her Own

💰 Ending portfolio balance: $13.2 million

Scenario B: Sally Pays a 1% AUM Fee

💰 Ending portfolio balance: $9.8 million

📉 Difference: $3.4 million

That’s over 25% of her lifetime wealth gone!

She paid about $650K directly in fees. And the money she paid in fees never got the chance to compound, so her ending balance was 25% lower than it could have been if she'd invested in low-cost index funds on her own.

This is the part that no one explains when they talk about a 1% fee.

“But Aren’t Advisors Supposed to Beat the Market?”

This is where the financial industry gets… awkward.

Over decades of data:

• Only 8–14% of professional managers beat the market long-term

• Most underperform before fees

• And then you still pay the fee

So you’re paying:

1. Higher fees

2. For returns that likely don’t beat boring index funds

Double whammy. Not the vibe.

The Big Lie: “Investing Is Too Complicated”

Learning about investing? OK, at first, it seems overwhelming, I totally agree.

But actually investing for long-term wealth? Shockingly simple.

Here’s the truth I wish someone had told me earlier:

80–100% of long-term portfolios should be in boring, low-cost index funds.

Boring = sexy.
Boring = powerful.
Boring = financial freedom.

Index funds:

• Are automatically diversified

• Have ultra-low fees

• Track the overall market

• Require minimal maintenance

You don’t need to babysit them.
You feed them, water them, maybe whisper affirmations… and let compounding do its thing.

Even Warren Buffett Agrees (the literal grandfather of investing)

When Warren Buffett (he's adorable, look him up) was asked how his wife’s money should be invested after his death, he didn’t say:

• Hedge funds

• Fancy strategies

• Hot stock picks

He said:

• 90% index funds

• 10% bonds

That’s it.

And if it’s good enough for him… it’s good enough for us.

How to Calculate Your Actual Fees (In Dollars, Not Percentages)

Percentages are abstract.
Dollars are where it finally clicks.

You don’t need to understand every detail of your investments to do this.
You just need rough numbers. We’re going for clarity, not perfection.

Here’s the simplest way to see what your fees are really costing you:

Step 1: Google a fee calculator

Type “mutual fund fee calculator” into Google and click the first one that comes up (NerdWallet works great).

Step 2: Plug in a few estimates

Don’t overthink this! Ballpark numbers are totally fine.

• Time horizon: How many years until you plan to retire

• Annual contributions: About how much you invest each year

• Annual rate of return: Use 10% (that’s the long-term stock market average)

• Total fees:

  • If you have an advisor charging ~1% and your funds are around ~1%, put 2%

  • If you’re not sure, that’s okay. We’ll fix that in a minute

Step 3: Run it twice

This is the eye-opening part.

• First run: Use your current estimated fees

• Second run: Change the fee to 0.1% (low-cost index fund range)

Now look at the difference in ending balance between the calculation with high fees and the calculation with low fees.

For many women?
It’s millions.

And this is usually the moment everything clicks.

👉 Want help understanding your fees?
Download my free guide that walks you through exactly how to know what fees you're paying, and even gives you a script to ask your advisor the right questions.

[Download the Investing Essentials Guide]

So… Do You Need an Advisor or a Money Coach?

Let’s clear this up.

I am not anti-advisor.
I am anti AUM fees for basic investing.

Advisors are amazing for:

• Complex tax strategies

• Inheritances

• Trusts

• Multiple businesses

• Estate planning

But for most high-earning women?

You don’t need someone managing your money.
You need someone helping you understand it.

That’s the difference:

• Advisors manage money for you

• Money coaches teach you to manage your money with confidence

And confidence in your own life choices?
That’s the real ROI.

The Real Power Move: Understanding Your Portfolio

This isn’t about DIY-ing everything forever.
It’s about not giving your power away by default.

When you understand:

• What you own

• Why you own it

• What it costs

• How it grows

You stop nodding and smiling.
You stop outsourcing your intuition.
You stop tolerating “I don’t know” as your baseline.

That’s women and investing done right.

Key Takeaways (Read These Twice)

• A 1% fee is not small. It can cost 25–30% of your lifetime wealth

• Low-cost index funds are the backbone of financial independence (and they are so simple)

• You don’t need to beat the market. You need to contribute consistently

• Understanding your money is the fastest way to reclaim your power

Ready to Take the Next Step?

If this lit something up for you (or made you a little angry in a productive way), here’s what to do next:

✨ Download my free guide to understanding your investments
✨ Listen to the full podcast episode for the walkthrough
✨ Book a call if you want support learning to invest confidently without giving your power away

You don’t need to become a finance bro.
You just need clarity.

And I’ve got you. 💅

Disclaimer: This content is for educational purposes only and should not be considered investment, tax, or financial advice. Always do your own due diligence or consult a licensed professional before making financial decisions.