Investment Fees & Retirement Savings
I know it does cost money to provide services to retirement accounts – not in small part due to all of the rules and regulations imposed on them.
However, some of the fees on the account’s assets seem to be really hard to justify – especially due to the lack of transparency for the individual account holder. Are they really getting value for those fees?
How much should they pay for this service if they have a $100,000 account balance? How about a $500,000 balance? Maybe $1000 per year is right for a $100,000 account, but do the $500,000 balance account holders get $5000 in value for their fees?
Not sure how the President’s proposal will really play out on this, but you can regard his comments from this Reuters article http://www.reuters.com/article/2015/02/23/us-usa-fiduciary-idUSKBN0LR0XR20150223
This is getting a fair amount of press at the current time. As usual it is probably not entirely black or white, but costs are one of the key elements one should work to control to have a successful investment plan.