fund expenses
So I was confused about the expense ratio for my employeer 401k and did a little research. It turns out that there is at most a 1.3% added expense to any fund I buy.
That takes a 10,000 dollar investment in an S&P Index fund held for ten years with a historic return of 11% and a normal fee of .06% down 13% ($26,735.83 vs. $23,437.96)
That same 10,000 dollar investment held for 20 years is down 24% with the VAC ($54,933.81 vs. $71,480.45)
This seems to defeat any tax savings in the inital year. And the US government gets the money instead of some insurance company.
And this is best case scenario since the S&P Fund has the lowest expense ratio!
A great calculator here at the SEC
