Being Smart with $$ -- Unnecessary Investment Fees Can Cost You a Fortune

Three quarters of a million dollars!  That’s about how much you might lose on a million-dollar starting portfolio over 15 years if your fees are around a mere 2%.  More correctly stated, that’s about how much less you’ll earn, all else equal, if you earn 5% investment returns annually (after 2.2% in fees) instead of 7.2% without unnecessary fees.  2.2% may not seem like much until you realize it may cost you three quarters of a million dollars.  Keep your investment fees low!  They matter more than you think.  Investors hate to lose money.  But what about losing the money you should have earned?  Don’t let an investment salesperson dazzle you with tales of big performance in exchange for a few percent in annual fees.  They are usually false promises that line the salesperson’s pocket at your expense.  Did I mention it may cost you three quarters of a million dollars? 

Larry Pike, CFA

Client Priority Financial Advisors LLC
www.clientpriority.com 

Being Smart with $$ -- Best Laid Plans

Best Laid Plans.  So often I hear from clients that a big part of their retirement plan is to work forever, or at least until 70.  Maybe they should have a Plan B.  A recent survey showed 8 out of 10 believe they’ll work in retirement but in reality, less than 3 in 10 do.  It’s usually due to a health or disability issue or an unexpected job loss.  Perhaps the advice of hoping for the best but planning for the worst is a good approach here.  If not working until 70 means cat food in retirement, best to make adjustments today to be safe.  (Source: Retirement Confidence Survey by Employee Benefit Research Institute 4/23/19.)

Larry Pike, CFA

Client Priority Financial Advisors LLC
www.clientpriority.com