Investment Strategy and 401k Fees

The Principle:

Think you want to “set it and forget it” when it comes to retirement planning? Consider the difference it would it make financially if you had a strategic plan instead. 

Honest Takes:

What kind of fees are you really paying with your 401(k)? U.S. News says unnecessarily high 401(k) fees can cost you tens of thousands of fees over the course of your career. If you look at the prospectus, you can usually find the fees associated with your fund. But what is the real cost over time?

Not only are you paying for the expenses and fees when you invest, but the taxes as well. Brian shares about a client who had a lot of mutual funds and then had a lot in taxes. Are your investments tax efficient? What other things like charitable giving can offset your taxes?

When it comes to your retirement, should you set it and forget it? Unlike the As Seen On TV rotisserie chicken this phrase originally was used for, retirement planning is not a set it and forget it situation. You need a plan, including a tax plan. The upkeep is constant.

If you are ready to get out of real estate and sell right now, it’s a good time. But how can you avoid capital gains? You need a strategy that fits your unique situation and financial plan. Reach out to an advisor to see how your investments and strategy may need to be adjusted to most benefit you in the long-run.

Listen to the entire episode or skip ahead using the timestamps below.

[0:12] What can we do about 401(k) fees?

[5:57] Should you set it and forget it with your retirement?

Today’s Truth:

“You need to have a lot of work to put in, there’s nothing to set and forget at all. It’s constant, it’s like maintaining a house.”

Brian Bowen


The Host:

Brian Bowen – Contact