Understanding fees
May 23, 2018
I’m Miriam Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money
V Many people have an IRA, 401k, or brokerage account with cash, stocks, mutual funds and other investments. Few people understand the fees they pay. Recent Wall Street Journal and Kiplinger’s finance magazine articles outlined how frustrating and difficult it is to track these.
M A person will likely charge1%. Mutual funds have their own fees. Usually 0.09% for index funds to over 1% for others. Transaction and wrap fees add to your “all in” fees. Total is now 2.5-3% in fees. With cost of living at 3% per year on average, you may have to beat a return of over 5.5-6% just be profitable.
Investigate. Know what you are getting.