Investment Fee Structures 2

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M 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. 

V A financial manager will likely charge1% then mutual funds have their own fees.  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.

M Investigate. Know what you are getting.