Recs

0

Saving for Retirement: Could This Simple Move Cut Your Investing Costs?

Saving for retirement is the biggest financial challenge many people face, and one problem involves the huge fees that people pay. Recently, the Center for American Progress suggested that having retirement mutual fund "labels" clearly showing fees could help people plan better for their retirement.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the proposal, noting that increased fee disclosure is always helpful for people evaluating their retirement savings options. Dan suggests that the hope that those making the proposal have is that more disclosure would actually lead employers to make smarter choices about which investments they choose for retirement plans, helping their workers add hundreds of thousands of dollars to their eventual retirement nest eggs. Dan concludes that although retirement-fund labeling wouldn't solve all the problems with retirement savings plans, it would be a step in the right direction.

How to get even more income during retirement
You can make your retirement savings go further. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Have general questions about Social Security? Email them to SocialSecurity@fool.com, and they might be the subject of a future video!


Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 27, 2014, at 3:58 PM, sevs4u wrote:

    A handy way of saving on retirement plan fees is to fully fund a Traditional or Roth IRA first where you have total control over the costs. Then, if it makes sense, contribute to your employer's retirement plan but opt for index funds to possibly lower costs: http://publicretirementplanners.blogspot.com/

  • Report this Comment On April 27, 2014, at 4:53 PM, FrankBernice wrote:

    Another mistake killing retirement budgets is to use whole life insurance, at least according to popular TV Experts like Suzey Orman and Dave Ramsey. It sounds pretty logical though. They recommend that you ditch a whole life insurance policy if you have one, and get a term policy instead from a place like LifeAnt, where you can get the same coverage for about $25 a month. I guess the risk in that is that the life insurance expires at some point, so I don't think that it is a good idea for everyone, but it sounds like good general advice. Your supposed to save the difference in cost to a retirement account (401k, Roth, IRA, something like that). I guess financial advisors really do kind of kill your retirements if they charge you fees, you pay fees to companies, fees for investments, fees to everyone.

  • Report this Comment On April 27, 2014, at 10:07 PM, sevs4u wrote:

    Frank - fees are fine if you are getting a valuable product or service in return. There are costs associated with the creation and maintenance of things like mutual funds, ETFs, insurance e.g. custodial charges. If someone doesn't have the time, experience or patience to invest by himself or find the optimal type of insurance, then paying a competent, experienced professional is worth the cost (within reason).

    http://publicretirementplanners.blogspot.com

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2931919, ~/Articles/ArticleHandler.aspx, 8/31/2014 6:28:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 1 day ago Sponsored by:
DOW 17,098.45 18.88 0.11%
S&P 500 2,003.37 6.63 0.33%
NASD 4,580.27 22.58 0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement