What You Don't Know Can Hurt You
Are you paying more than you need to?
A number of surveys over the years have indicated that investors, for the most part, are satisfied with the fees paid for their investments. Yes, and Kim Jong Un gets a 99% approval rating from the citizens of his North Korean regime. Okay, comparing a dictatorship to investment fees may be a bit of a stretch. The point is that an informed decision is possible only when all the facts and options are known. Unfortunately, when it comes to investment fees, most investors we encounter for the first time are not aware of what they pay or only "think" they know the full price tag. Most investors simply don’t know what they don’t know. And it’s completely understandable because the expense structures in the financial industry can be complex and brokerage firms, including many of the biggest names, have mastered the art of hiding fees.
The bottom line is that thousands of consumers don’t know that they are needlessly paying up to 2% more each year out of their investment accounts. And while it may not show on the brokerage statement as a deduction, fees and expenses can be the biggest drain on growing your investment assets. You might ask, “Does 1% matter?” Excessive fees equaling 1% over just 30 years could reduce a nest egg by nearly 33% possibly resulting in a loss of hundreds of thousands of dollars. Dollars that could help accelerate or enhance retirement, supplement a child’s education, or one of many other worthwhile financial goals.
So the next time you look at your investment statement or review your financial situation, it's a good time to determine the total cost of your investment portfolio. After all, it's your money and what you know can help you... significantly.
We just sent you an email. Please click the link in the email to confirm your subscription!