[Upbeat Music] When you think about saving for retirement, you probably focus on how much you're contributing and how your investments are performing. But there's another important piece of the puzzle that can impact your retirement savings balance. It's fees. Like most things in life, it costs money to save and invest for retirement. Fees and expenses reduce your investment returns, sometimes significantly. Being informed about what you pay and why you pay it can help you make smarter decisions and keep more of your money working for your future. With MO Deferred Comp, plan participants pay a plan administration fee of $1.75 per month plus .08% of assets. Each investment option in the current lineup also has a management fee for operating the fund averaging approximately .13%. These fees cover the real costs of running and maintaining the plan, including staff, customer service, financial education, mailings, technology, recordkeeping, investment management, and more. So, how much do fees really impact your retirement savings? Let's walk through a simple example. Imagine you start with a zero balance in your deferred comp account. You contribute $100 every semimonthly paycheck and earn an average annual return of 6% over the next 25 years. If you invest in a fund with an expense ratio of 0.25%, your estimated balance after 25 years would be roughly $133,690. Now, instead, if you invest in a fund with an expense ratio of 1.25%. Your ending balance drops to about $114,950. That's nearly $19,000 less. And the only difference is a 1% increase in fees. Over time, those small differences in fees don't stay small, and they compound right alongside your returns. And that's the key. You're not just paying the fee itself. You're also giving up the potential growth that money could have earned over decades. When saving for retirement, even tiny percentages create a meaningful gap in your final balance. If you have questions, reach out to your local financial education professional or visit www.modeferredcomp.org for additional resources and information about fees. [Upbeat Music]
