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Tag Archives: investment fees

Do Investment Fees Really Matter?

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For anyone who pays attention to investment funds or stocks, you’ll notice that all of them charge fees. With all the choices and associated numbers and ratings that go along with investments, it’s no wonder that fees can be confusing or misunderstood. In the whole scheme of things, do investment fees really even matter? What Fees Am I Paying? Depending on how you invest, fees can vary greatly. These are some of the more common fees investors can expect. Administration Fees– This is the fee that plans charge to pay for day to day operations like accounting, legal bills, customer service, and website support. You can expect administrative fees with most 401(k) type plans or with other industrial accounts. Since I fund my HSA through an administrator that invests in the stock market, I have a $50 administrative fee due every year. Investment Fees– These fees cover the cost of managing a fund and are taken as a percentage of the assets invested. Investment fees can vary greatly. Low cost index funds can be less than a tenth of a percent while some actively managed funds can be several percentage points. Individual Service Fees-These are fees that come from extra ...

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Advice for a Beginning Investor

I had the pleasure of discussing investing with one of my friends recently. She and her husband hadn’t really started saving for retirement. They also had a baby last year and wanted to look into options for college funds. I am certainly no expert, but I’ve learned a thing or two over the years, and I love to talk about money. It’s just hard to find anyone to talk with most of the time! It turns out they had already met with a financial planner who gave some recommendations, but she was unsure about his advice. It turns out she had already done quite a bit of research and just needed to pull the trigger. I think lots of people are in the same boat and end up doing nothing because they are scared of making the wrong investment choices. There is never a better time than now to start investing, and you don’t necessarily need a financial planner to do so. Financial Planners, Friend or Foe? I have nothing against having a financial planner. I know there are some amazing ones. I just don’t think any of them live in my town. I met with one a few years ...

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