How Fees, Inflation and Taxes Affect Investments

Starting with $10,000, this chart shows how investment returns are affected by common factors: fund fees (assuming 0.25%), inflation (assuming an average annual rate of 2.5%), and taxes (assuming a 24% tax rate). The orange line accounts for all factors together. This illustrates why investors need to consider "real" returns rather than just nominal gains. You can follow along the lines with your cursor to see the numerical changes over time.