THE MITEY FIELD NOTES
A bigger balance is not the same as more buying power
Separate nominal growth, fees, foregone returns and inflation before comparing investment projections.
The short answer
A useful investment projection separates the money contributed, the nominal balance after fees, and its purchasing power in starting-date dollars. The no-fee comparison is a reference calculation, not an available product or a promised return.
01 / A CLOSER LOOK
Start with a reproducible cash-flow schedule.
In the fees and inflation calculator, the starting balance is invested at the beginning of the model. Each month the opening balance receives the entered effective return, a modeled asset fee is charged, and the contribution is added at month end. That timing matters: money added at the end of a month does not receive that month’s return.
Try the zero-growth example first. A $10,000 starting balance and twelve $100 contributions, with no fees or inflation, should end at $11,200. This simple case checks that contributions are being counted once. Change one assumption at a time before interpreting a more complicated result.
02 / A CLOSER LOOK
Keep actual fees and the ending-value gap separate.
The model totals the fee amounts actually removed from the portfolio. It also runs the same contribution schedule at the same gross return without fees. The difference between those ending balances reflects both the charged fees and their effect on subsequent compounding. It is not a second fee bill.
The SEC’s investor education material explains that fees reduce the assets available to earn returns. Our implementation makes its particular monthly equivalent explicit. A real product may accrue charges daily, apply them to a different base, bill separately or have taxes and transaction costs. Replace the assumptions with the relevant costs, and do not treat this convention as a universal product-pricing rule.
03 / A CLOSER LOOK
Read the inflation-adjusted headline alongside nominal cash.
The headline divides the final after-fee balance by the entered inflation factor over the projection period. This gives a starting-date purchasing-power equivalent. The chart stays in nominal dollars so that the fee comparison uses one consistent unit. A purchasing-power number is not an extra deduction from the account.
The projection assumes a constant return, fee, inflation rate and monthly contribution. It does not simulate market fluctuations, taxes, contribution limits or salary growth. Increase the contribution deliberately if you want to test a different savings habit; do not assume the calculator has already increased it with inflation. Save two scenarios and compare contributions as well as balances.
04 / A CLOSER LOOK
Use the output to prepare a better question.
Download the annual table when you need to compare nominal value with purchasing power over time. The complete period ledger separately records contributions and net growth. Its cumulative contribution total includes the starting investment, while the monthly contribution column starts after the initial balance.
A lower modeled fee does not prove that an investment is suitable or that it offers the same risk, liquidity or services. The useful next step is to identify the costs, timing and risks in the actual product and compare them consistently. Preserve those assumptions with the brief so the arithmetic can be reproduced.
Sources and scope
SEC Investor.gov: fees and investment portfolios ↗
The source provides context for the subject. The worked models are MITEY implementations described on their own pages. This guide does not assess personal eligibility or recommend a product. Report a correction.