Monday, June 2, 2014
- Advisor fees: A plan that pays the advisor a set percentage of overall assets may look low at first, but can become a significant amount taken out and do not reflect the amount of work the advisor has done.
- Fees to a mutual fund: Many advisors hire a mutual fund to make the account investments, which adds another fee to be paid by the account holder.
- Trading fees: Each time a stock is bought or sold, fees may be being attached to the transaction.
- Loss from not keeping a balanced portfolio: Investors that are taking on too much or too little risk are costing themselves money.
- Taxes: Investors that do not maximize their 401(k) and IRA are losing money by having taxable accounts.
See Mitch Tuchman, Hidden Fees That Eat Your Retirement Alive, Forbes, May 29, 2014.