Well, this will be my last post on this blog before swapping across to the new House Of Simple blog.
We are off overseas for 5 weeks of frugal adventure, so expect the new blog to open up in about 6 weeks time. I'll post a notification here with a link as soon as it is live.
The other day I was talking to a friend and the topic of fees for retirement funds came up - this got me thinking. Fees are sneaky little suckers when it comes to investment funds of any shape and size. Often you'll get told that 2 or 3 percent fees are just fine especially seeing how well the fund has done over the last 10 years. While ever we are contributing to investment funds (including retirement funds) fees do not seem to be noticeable simply because we are seeing our contributions making the investment graph climb positively and the effect of fees are hidden. The minute we stop contributing and start withdrawing, the fees are hideously noticeable.
Good returns come and go - fees compound forever.
Do yourself a favour - dig out your investment Product Disclosure Statement for your retirement fund or investment fund/s and go hunting for the fee structure. Often the fees will not be all noted in one neat graph, table or sentence (sneaky much). Rule of thumb, if total fees exceed 1% then start researching for alternatives. Remember - 1% fees over 30 years is in real terms equal to 30% of your principle taken in fees (What the ..... I know right!).
Fees are a big deal over the long term. Make it your business to do your own research on
quality investment products with fee structures that benefit the investor not the investment company. Excessive fees rob your future self of income and assets.
Take care till next time