Being smart with $$ -- The painful bite of fees

You don’t think fees matter much in your investments?  Money Magazine (May ’17) highlighted what two accounts look like 30 years after two friends retired, with each account worth $1 million on the day they quit working, each having actual returns from a 50/50 stock/bond mix over the last 30 years and each of them taking $40k out the first year and increasing that amount each year for inflation.  The account with 1% in fees is worth $3.3 million today.  Sound good?  Well, the other account had fees of only 0.25% and it’s worth $4.6 million today!  Fees don’t matter?  Tell that to the first guy’s kids who have $1.3 million less inheritance to split!  Hourly, fee-based advisors can help you invest with low investment fees and without the detrimental effect of high commissions, loads or annual, recurring advisor charges.

Larry Pike, CFA

www.clientpriority.com