Fees are probably the most unrecognized drain on individual investment accounts. Investors generally have no idea how much they are paying in fees and whether or not the amount is appropriate.
Our customers are usually quite disheartened to learn that actual fees on investment accounts are hard to identify and equally hard to understand. For instance, do you have an employee sponsored 401(k) account? If so, you’re probably paying three different fees (maybe four) on that account alone.
Fees aren’t all bad (or avoidable). Investing is a tricky business and often you get what you pay for (like with anything else). Good financial professionals can be worth the money they cost. The only way to know if you’re getting your money’s worth is to know what you’re paying. Account statements and websites are not always helpful when it comes to uncovering all you’re paying in fees. Sometimes it seems like they are purposely confusing (making fees difficult to understand or even see). Expense fees, management fees, transaction fees, commissions, surrender charges, and custodian fees are all fees that may be eroding your investment returns. It’s hard to imagine but a ¾ of 1% change in your fees in year one of a $100K investment with a 5% return will cost you $12K over 10 years. You would never realize you lost the money because the losses are unrealized gains. However, if we took $12K out of your check at the end of the 10 years you sure would notice! What could you do with another $12K?
InvestorKeep tracks up to 30 different types of fees that might affect your finances. Our fintech platform will alert you to changes in fees across all your accounts, giving you the information you need to take action, avoid high, unreasonable, or unwarranted fees, and keep your nest egg growing at a faster rate.
In addition to the alerts InvestorKeep sends, the Investor Snapshot on the InvestorKeep dashboard highlights how much you’re paying in overall fees and how they relate to market averages.
Between IK alerts and the IK Snapshot, you’ll be well informed of the fees you are paying, whether they are appropriate, and what to do about it if they’re not.