Fund Fees
Cut the fees and get more retirement cash
Are you paying too much in fees on your IRA or 401 (k) retirement fund?
If you are paying too much in fees for your 401 (k) retirement fund, you could lose 15-20% of the total benefits over the years you are saving. In fact, an increase of 1% will rob you of 17% of your total savings. This is a huge amount, and you lose it because as your retirement fund builds up so the fees increase - they are usually a percentage of the total fund. Make sure you keep as much as you can, and don’t let the fund managers and advisors get it!
To get the amount of retirement money you thought you were going to get you might need to postpone retirement by two or three years, and I’m sure you don’t want to do that.
Legislators complain that there are too many hidden fees, or fees with weird names that no-one can understand, which makes it difficult for people to understand what they are paying. Make sure you do not fall into this trap.
As a result, it is likely that very soon the Federal government will insist that all fees are disclosed to the client in one figure. This way, the market will be more competitive and you have a chance of getting more of your money - that’s what we want.
Some fund managers and advisers welcome the proposed changes and think it is high time the consumer had a more open market in retirement funds. They realize that it will help consumers, and that if they show they ave low fees, they will get more clients. Expert say it is not difficult to show the exact amount being paid.
Once people can see what they are paying in fees, and what they are likely to get when they retire, the market will be more open to competition, which is good for us all.
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