Saving for your retirement is important, and it is likely you have either a 401(k) or Individual Retirement Account (IRA) set up for that purpose. However, funds have fees that decrease the total amount available at retirement. One fee that can decrease a total balance is an expense ratio, which is a fee that exists on all retirement funds and is one of the most important fees to understand.
Topics: investment fees, Near or in Retirement, Saving for Retirement, hidden investment fees, investment expense ratio, what is an expense ratio, average expense ratio, what is a good expense ratio, expense ratio, expense ratio formula
Some big corporate retirement plans have been hit with lawsuits lately claiming that the plans charged investors too much. Nobody wants to overpay. But in at least one case, the investment funds were already low-cost options from a low-cost provider. The difference between those funds and ultra-low equivalents amounted to just few hundredths of one percent.
Why is retirement investing like managing your TV provider? It’s not because it’s so hard to find something you like among a zillion options. Well, actually that’s true too. But what we want to talk about is that massive, detailed monthly bill.