Episode #69: Hidden Expenses

By | 2018-10-25T18:06:12+00:00 November 1st, 2018|Podcast|0 Comments

Today’s Objective…

Just because you can’t plainly see all the hidden expenses in your portfolio doesn’t mean they aren’t there. Uncover areas to watch for hidden costs.

(Click the featured times below to jump forward in the episode)

First Things First.

Tactical Points:

Hidden Expenses: Management.

  • 11:49 – Most of you are aware of management fees when it comes to working with your advisor. However, you may not be aware of the additional fees associated with your investments. As an example, a certain annuity might carry with it a mortality and expense fee, a death benefit rider fee, a spousal protection fee, and many other fees as well.

Hidden Expenses: 12b-1 Fees.

  • 12:44 – You might have heard of this one. If you look in the small print of your brokerage account statement, you’ll see where particular mutual funds carry certain annual marketing and distribution fees. Different broker-dealers work with particular mutual fund companies because they get a kickback each time they sell that particular fund. If you’ve been working with a big-box advisor, you’ve almost certainly been sold a particular mutual fund on that basis. Your advisor wants the large commission that comes with selling you a certain product.

Hidden Expenses: Lifestyle.

  • 14:16 – While it’s not a fee per se, your lifestyle in retirement will almost certainly leave you with hidden expenses. Over the years, healthcare costs will rise, inflation will eat into your investments, and that trip to Paris will most certainly put you in the red on your monthly budget. While you might not realize it, the government can also tax your Social Security. All of those general costs of living will eat into your portfolio if you’re not prepared.

More Planning Points: 

  • 1:15 – Dan’s trip to Israel.
  • 12:10 – Mutual Fund Turnover Ratio.
  • 14:54 – Lifestyle Creep.

The Plan:

Free Retirement Toolkit:

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Extra Planning:

The host: Dan Betzel – ContactRetirement Trailblazer GuideRetirement Rescue Toolkit – Call: 614-472-4510

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