At the heart of our process are the tools we use. Most are mutual funds. In discussions, we often gloss over this fact and cut straight to how the funds are allocated. Here, we will take a step back and review some mutual fund basics.

That ignores the opportunity cost of lost growth. Every year of Isaac’s fee savings is invested. If Isaac earned 7.00% annualized for 30 years and Henry earned 6.75%, that 0.25% difference amounts to over half a million dollars! Compound interest: the 8th wonder of the world!