Watch Out For Unnecessary Fees In Your IRA
Despite the fact that money is not everything, we all want to reach retirement healthy and financially stable, highlighting the importance of maximizing one’s IRA . The last few years has definitely shaken that ideal at the core, making it a bit harder for one to believe they will retire as once imagined. This reality has increased one’s attention on how to best plan for retirement. What is the best retirement investing strategy? With an IRA or IRA rollover should one look to invest in mutual funds or index funds? Should you manage your own investing or seek advice from an investment adviser? And what about paying attention to creating an asset allocation suited to your risk tolerance and retirement goals? When answering these questions and entertaining various investment options, make sure you understand the fees that are being paid as they will stand in your way from maximizing your retirement dollars.
Robert Powell of MarketWatch uncovers in his recent article ‘Advice You Can Count On?‘ the dirty little secret of many managed IRA accounts – fees are out of control and returns are down. This has led to recent legislation to bring some fairness back to IRA investing. Even the White House has chimed it stating, “if investment advisers receive compensation for steering workers into investment options with high fees and expenses, they face conflicts of interest that can undermine the reliability of their advice.”
It may be years before any law is passed protecting you from high fees and expenses, so in the meantime consider taking matters into your own hands by managing your own portfolio and investing in index funds or exchange traded funds. The money saved on fees will compound over time making for a more financially stable retirement.
Comments
Leave a Reply