Are Mutual Fund Fees Taking Away Your Retirement?
Overview:
The world of retirement has changed away from a pension and
social security system directed by your employer to IRA and 401(k) system
directed by an employee. It is now on the employee to understand the inputs and
outputs of their retirement, as nothing will be handed to employees the way
pension and social security are today. The subject of today’s article is mutual
fund’s fees, as mutual funds usually make-up an employee’s retirement account.
{Noted that mutual funds are also included throughout other investment vehicles
like 529 plans and mutual funds are also a favorite of financial advisors.}
PURPOSE:
There are many great articles around the different types of
investment fees, but for this article, I just want to put out an example of how
a mutual fund takes away an employee’s retirement money via the fees they charge.
For now, we’re just going to talk through the yearly expense a mutual fund
typically charges. My current Audio Book is actually “Common Sense on Mutual
Funds” by John Bogle (the man who started Vanguard), so I plan on adding a few
more articles around the types of fees charged by a mutual fund and overall
discussion on mutual fund to Finance First.
PURPOSE:
There are many great articles around the different types of
investment fees, but for this article, I just want to put out an example of how
a mutual fund takes away an employee’s retirement money via the fees they charge.
For now, we’re just going to talk through the yearly expense a mutual fund
typically charges. My current Audio Book is actually “Common Sense on Mutual
Funds” by John Bogle (the man who started Vanguard), so I plan on adding a few
more articles around the types of fees charged by a mutual fund and overall
discussion on mutual fund to Finance First.