Let's see how fees can hurt your investment strategy. Let's assume that your mutual fund grows at an average rate of 7% per year-before subtracting the fees. Using the rule of 70:
a. How many years will it take for your money to double if fees are 0.5% per year?
b. How many years will it take for your money to double if fees are 1.5% per year (not uncommon in the mutual fund industry)?
c. How many years to double if fees are 2.5% per year?