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Will This Crushingly Expensive Mistake Kill Your Retirement?

by TLTheLiberator
3 replies
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Story here...













The Crushingly Expensive Mistake Killing Your Retirement - Matthew O'Brien - The Atlantic
  • Profile picture of the author tagiscom
    Doesn't matter much in AU, we typically blow the lot on overseas holidays, 4 wheel drives and cash gifts!

    Then go on the pension!

    Not to mention stashing 10 or more thousand k's in our mattresses, so we can enjoy our retirement, without affecting pension payments!


    Shane :rolleyes:
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    Archimedes Forum, Sign up l won't bite
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  • Profile picture of the author seasoned
    THAT'S RIGHT!!!!!!!! If a robber steals $100 from you, you should SUE him over the $1 he took! INSANE!!!!!!!!!

    The government, to "try" to ****LOOK**** like they are trying to help you instituted a bunch of nearly worthless laws! NOW, let me tell you the TRUTH!

    FUND/COMPANY name means LITTLE! Sometimes they have the EXACT criteria for incredibly DIFFERENT vehicles! The vehicles COULD have a different company and likely have a different manager, fees, etc.... The key giveaway is the NAV is often very different ALSO. and the "institutional" version(used by things like 401Ks), is often LESS. Sometimes, there is NO way to determine how the fund is doing! Suppose it is up 20% for the year. For all you know, it is up 30% for the year, and the seller pocketed 30% of the gains!

    FEES can be VERY different. They may vary based on circumstance and timing and they may vary based on YOU, your career, the seller, the fund, etc.... There could be various management fees, loads(going in and coming out), etc....

    PORTFOLIOS can be different and may not even be offered.

    As for that 1%? The 12b1 ALONE could be that much! Frankly, i don't think they should have such a fee. Aren't the front and rear loads ENOUGH? And rules and circumstance means that a fund may DEGRADE as it gets larger. So the 12b1 fee may be taken out to LOWER the fund still MORE! But the 12b1 is an ONGOING fee, and it allows them to make a TON while selling a "no load". LOAD is what it carries, or a burden, so technically a 12b1 IS a load. But the NASD defines load differently.

    AND, such sellers feel they can freely change ANYTHING! Read every insert! They may DROP your favorite fund, and put you into a horrible bond that you KNOW will do poorly for the rest of its miserable life!

    But YEAH, let's talk about the 1%!

    Steve
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