The average actively managed mutual fund charges around 1% annually, and even popular index funds from legacy providers can run 0.10% to 0.20%. Those differences sound trivial until you calculate what they cost over decades. SCHK charges just 0.03%, making it one of the lowest-cost ways to own broad U.S. equity exposure. This pricing advantage becomes meaningful over decades as the difference between paying $30 versus $1,000 annually on a $100,000 investment compounds into substantial wealth preservation.
There are plenty of retirees today who get the bulk of their income from Social Security. Some seniors, in fact, manage to live on Social Security alone (though they don't necessarily live well). But you should know that the average retiree on Social Security today gets about $2,015 per month. Even if you're willing to live very frugally, that may not be enough money to cover your bills, especially when you factor in rising healthcare costs and persistent inflation.
Even small optimizations can become meaningful. Assuming a $5,000 initial investment and annual $5,000 contributions for 25 years, the difference in improving your IRR just 1% and going from 8% to 9% annual returns results in nearly $67,000 more in your retirement account. So it's worth spending a little extra time to make sure you're getting the most out of your Roth IRA by understanding all the various benefits and strategies.