Listen to Episode 15 Here:
Understanding Investment Fees is Challenging!
As some of you have heard me mention before, similar to the medical field, we often find many people have no idea what they’re paying when it comes to their finances.
Why are Investment Fees so High?
Fees vs. Value
The ERWA Difference
Every investment has a cost
- Certain types of insurance
- Certain types of mutual funds
- Certain classes of mutual funds
- ETFs (aka Exchange Traded Funds)
- 12b-1 fees, which are fund advertising fees
Annuities - Some annuities are notorious for being a "black box," or having fees that are extremely hard to determine.
Now, it’s human to want to hit a home run or find the next Amazon, Microsoft, Apple, or whichever cannabis stock is the flavor of the month, but what most fail to realize is what they should be focusing on is what type of income they will actually need in retirement as opposed to how big their returns are.
That’s what we specialize in, getting to the root of what you actually need as opposed to what you think you need.
- We are capitalist and we certainly like to make a profit; after all, businesses can’t survive without one…
But we believe incentives should be aligned with our clients as much as possible. Educating, informing, and transparency are paramount at my firm. We believe that no matter what direction you choose for financial advice, if the advisors aren’t transparent with how and how much they are paid, that is a huge red flag.