Today’s Mission:

Hidden expenses are lurking in your retirement plan even if you can’t see them. Join us as we uncover five important areas where you’ll find hidden costs.

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(Click the featured times below to jump forward in the episode)

Strategy Points:

2:43 – Hidden Expenses: Mutual Funds.

  • Due to changes in the law, you’ll normally be able to see the expense ratio associated with a mutual fund. However, those fees really only address administrative and marketing costs. You’re not going to see the actual fees associated with the management of the fund. You can technically uncover them if you care to peruse through your fund’s statement, but you’re going to have to look within the clutter of financial jargon. Management expenses normally accompany the buying and selling of investments within the fund, but you’re not going to hear about those nitty gritty details.

6:27  – Hidden Expenses: Variable Annuities.  

  • A variable annuity is essentially an insurance wrapper with mutual funds inside. Therefore, you still have those mutual fund fees inside the wrapper. Additionally, you’ve got all sorts of riders on the policy including administration fees, operation fees, and distribution fees. All of those fees can really start to add up. Annuities serve a purpose and can help you solve specific problems, but there are all sorts of fees involved.

8:48 – Hidden Expenses: Inflation.

  • Inflation isn’t a fee per se, but it’s certainly an expense. Most people don’t factor inflation into their financial plan. However, inflation will affect your purchasing power long-term, and it can eat into your portfolio. You might talk about wanting to be out of the market in retirement, but there’s still a risk associated with leaving your money in cash. Develop a plan that will help your money to outpace inflation throughout retirement.

Other Objectives:  

  • 12:37 – Hidden Expenses: Tax Increases.
  • 15:17 -Hidden Expenses: Lifestyle Creep.

The Grand Plan:

[spp-tweet tweet=”Take a closer look at your financial plan, and discover all the hidden fees lurking within. Work with an advisor who will be candid with you about the costs involved in financial planning. – Your Financial Mission“]

The Spy Kit:

Click the image to get a free retirement rescue toolkit.

More Intel:

Forbes Article

The host: J’Neanne TheusContact – Call: (443) 718-6310


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