Thursday, September 12, 2013
Before putting your money into an account for college or retirement, you should be sure that your tax savings wont be dwindled by fees. A new study by Cornell University reveals some lessons investors should pay attention to.
- Taxes have hidden costs make sure you know all the tax angles.
- Administrative costs for 401(k) and 529 plans are high.
- High costs compound, so investors should use a mutual expense calculator.
- Investors should disclose 529s and 401(k) helps lower costs.
- Educate yourself about the different investments and fees.
- Tax breaks can tether investors in a negative way.
See Janet Novack, 10 Tough Lessons For College and Retirement Savers -- And Tax Reform, Forbes, Sep. 10, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.