Costs Matter – The Impact of Fees on Your Retirement
People have spent eternity trying to outguess or outsmart financial markets. Another way of looking at this is to understand that people are trying to control financial markets. However, financial markets are dynamic and resist control at any level. Ultimately, this is a fool’s errand.
Conversely, controlling costs is something that can and should be done. On this program, I run through a study we recently prepared for a company. While simple, it shows the individual and cumulative damage that higher and unnecessary fees inflict on retirement investors.
In the study, the impact on a small retirement plan of $5 million dollars over two decades is striking. While numbers can sometimes be hard for people to comprehend, the resulting impact changes people’s lives for the worse. By controlling costs and paying only necessary fees, it is possible for employers to have a large positive impact on their own employees.
Later in the program, I discuss the three factors that people can use to impact their own retirement:
- Funding (wish I could change this)
- The timing of your retirement
- Change the way you invest
These three factors can have a positive or negative influence on your retirement. Since they are under your control or influence these are the items you should spend time on rather than worrying about trying to outsmart financial markets.
As always, thank you for listening to my program on KNBR 680. If you have questions or concerns about your own investments or would like us to review what you are doing, please contact Gary.
The best way to contact Gary is through email at email@example.com. But you can try to reach him by phone as well at 916.436.8331.