Are Hidden Fees Impacting Your Retirement?
Could some of the retirement accounts that you are investing in now impact your retirement later? What can you do to increase the value of your retirement portfolio? And how much are hidden fees impacting your retirement?
When investing in a 401(k) there can be some hidden fees; do you know how much your hidden fees are adding up to? Presuming over a 30 year working career you earn about $60,000 per year and put 10% of that salary into your 401(k). Now if you are spending 1.5% in annual fees on your assets, by the age of 65 your 401(k) with have accumulated to a total balance of a little under $1.2 million.
Let’s say you cut your annual fees by a half of a percentage so now you are spending 1% on your assets. Your account value now has the ability to ascend to $1.3 million by the time you reach 65 years old. Now, what if you could reduce your annual fees by a whole percent? As you are earning $60,000 per year and spending 0.5% in annual fees, the value of your retirement portfolio in your 401(k) can increase to $1.5 million in 30 years.
Studies show that if you can reduce your 401(k) annual fees by 0.5% or even by 1%, your portfolio has the potential to increase by 10% in just 30 years. The good thing is that it is not hard to reduce your annual fees and by doing so, you could reach your financial goals sooner.
Recently, the Wall Street Journal released an article discussing how high fees can derail your retirement. If you have not had an analysis performed on the fees in your portfolio, isn't it time? Here at Cornerstone Retirement Group, we can help you reduce those fees. Give our office a call (775) 853-9033.