<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Five Cent Nickel

Five Cent Nickel

August 17th, 2011 at 09:13 pm

There is an awesome blog post today over at Five Cent Nickel. It eloquently sums up why investing costs matter.

Text is http://www.fivecentnickel.com/2011/08/17/financial-advisors-asset-management-fees-and-you/ and Link is
http://www.fivecentnickel.com/2011/08/17/financial-advisors-...

Posted in Investing | 4 Comments »

4 Responses to “Five Cent Nickel”

  1. MonkeyMama Says:
    August 17th, 2011 at 10:13 pm 1313615614
    1313615614

    Great post! (I had never really thought about how 1% would affect retirement withdrawal). & as some commenter mentioned - it may be worthwhile to pay a small amount for higher returns. BUT, the fees can easily be astronomical with any advisor (their fees + loads, plus funds with high expense ratios, and on and on and on). My dh's whole family is enamored with a VERY expensive advisor, and I just cringe to watch.

    I should probably start following this blog. Thanks for sharing!

  2. Petunia 100 Says:
    August 18th, 2011 at 12:18 am 1313623102
    1313623102

    Sometimes during tax season I see some horrible, expensive portfolios. It makes me sad to see someone who has worked hard and saved losing so much of their money unnecessarily. Especially variable annuities inside of IRAs, those are the worst. Oh, how I would like to slip them some articles from the web, just slide it in their folder on the sly. I am sure you see plenty of horrible portfolios too.

    I hope your in-law's advisor is doing a good job for them. I do think that if an advisor talks clients out of selling low and buying high, then s/he is worth the added expense. Other than that, I don't see the value.

    Five Cent Nickel is one of my favorite sites. I hope that you enjoy it, Monkey Mama!

  3. MonkeyMama Says:
    August 18th, 2011 at 04:25 am 1313637913
    1313637913

    I generally don't see portfolios. (That is the funny thing I hear so often - like Dave Ramsey was chastising CPAs for not giving investment advice. Oy vey. Like I know from a 1099 what crap my clients are invested in! Plus, um, I can't legally give investment advice? Bad idea - not sure malpractice insurer would like it? We don't even recommend investment advisors at the risk of recommending the next Madoff. Which is fine, since there are -0- I would recommend).

    That said, I do see a lot of terrible investment ideas. Brokers who encourage clients to borrow large amounts of money (against homes or stocks) to invest, and all sorts of cray investment ideas that people get talked into. With those type things, we open our mouths and say something! It's just too horrible not to. I generally only know about these the few times a client thinks to ask our opinion.

  4. baselle Says:
    August 19th, 2011 at 05:57 am 1313729848
    1313729848

    And all of those examples are based on things going super well. The 1% galls me because its charged no matter what. Win, and they charge 1%; lose and they also charge 1%. I've said it to my friends that "Investing is like driving. If a car's going into the ditch at least I want my fingerprints on the wheel."

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]