Investor Update - Are You Asking the Right Questions – CHECK YOUR FEES
Again I want to say thanks for being added to our email list. As I tell all of my clients, my goal is not only to manage your money to help you live your best life, but to educate you on the process. The way I deliver this to you is by giving you information in these emails. These emails will assist you if you manage your own money, or get you to ask the right questions if you’ve trusted someone else to do it for you.
It all starts with Fees, so this email is devoted to how much you are paying to buy and own your investments.
As my dad always told me “there is no free lunch”. This is very true in the investing world. From commissions to asset based fees, there are several different ways that fees are charged to investors and the main point here is to “Know what you are paying”. The reason I stress this point, is that in numerous surveys conducted by independent firms, MANY investors do not know what that are paying in fees.
Fees can have an enormous impact on your overall returns. According to Vanguard, nearly 30% of investor returns were eaten up in fees, and that’s just with an average expense ratio of 1.27%, believe it or not many people pay more than that.
So get the answer to the following question;
1. How much am I being charged to have my investments managed?
Once you have the answer to this, ask;
2. Do the investments I own have any additional fees or charges?
Why would you ask the second question? Because believe it or not, many Financial Advisors do not manage your investments personally. Instead your assets are managed by a third party portfolio manager or by purchasing an investment product that will have additional internal fees that you may not be aware of. All I want you to do is ask and know what you are really paying. Don’t be like the masses and have your head in the sand.
Sincerely,
Any opinions are those of Mick Graham and not necessarily those of RJFS or Raymond James. Expressions of opinion are of this date and are subject to change without notice. Individual investor's results will vary. There is no guarantee that any statements, opinions or forecasts provided herein will prove to be correct. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.
