It is imperative to know all the fees you are paying when it comes to your retirement assets. Mike Reeves, financial planning advisor of Strategic Wealth Designers, tells us how to avoid hidden fees in our investment portfolios.
Reeves states, “When it comes to fees and Americans most people have an inch or two, they can pinch because 80% of Americans own mutual funds. Mutual funds all at least have two fees, but they can have three or four or more.” This can add up over time causing us to pay a significant amount of fees on our retirement portfolios that we are not aware of.
Reeves explains that firms and banks are charging an additional 1% fee which can add up. He states, “It’s huge. Over a long period of time you are talking $40,000 for the average American who is in their 60’s. They have about $200,000 in their retirement plans with mutual funds.” There is a lot you can do with $40,000 in a retirement plan.
As a firm, there are steps you should take to be transparent with your clients. Reeves states, ““The most important thing in the relationship between a client and an Advisor is transparency. As a fiduciary, you have to be completely transparent with the client. You have to put in writing what exactly you are charging a client and if there are any possible conflicts of interest. All fiduciaries have to do that and in fact not all Advisors are fiduciaries.”
To learn more about all things business or financial planning related in the viewing area visit https://CBS4Indy.com/news/strategic-wealth. If you have a question or would like to schedule a complimentary portfolio review with Mike send an email to email@example.com.