How to make investments work without high fees
LEXINGTON, Ky. (WKYT) - It’s important to make the most of your investments. How do you balance the risk and the reward? We want to minimize fees while increasing our returns. Independent financial planner Josh Smith of Strategic Wealth Designers joined us on air to explain how to make your investments work without high fees. Knowing all types of fees you are being charged is extremely important.
“It sounds simple, but many people are unaware of their fees,” Smith says. “It isn’t always easy to find this information either. For some, you may have to look in that very lengthy prospectus to find all the fees you are being charged. Ideally, you want your total fees to be between 1-1.5%.”
Protecting your nest egg while the market is fluctuating will help ensure you can retire on time. Additionally, focusing on asset allocation is important to your portfolio. Diversification can be important but allocating your assets strategically will allow different correlated assets to move in different directions.
“Avoid multiple fees when you can,” Smith says. “Avoid mutual funds in dormant accounts. These can face high fees. Also, these dormant accounts aren’t allowing you to buy through the ups and downs of the market. Stacking high fees on top of that risk creates a problem.”
Understanding the fees you’re paying can help you make the most of your retirement savings. To see additional stories surrounding business and economic news for the Lexington area, visit https://WKYT.com/MoneyMatters and if you have a question for Josh send an email to firstname.lastname@example.org.
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