Winning in Retirement: When Every Day Is Saturday by Chad Slagle

Winning in Retirement: When Every Day Is Saturday by Chad Slagle

Author:Chad Slagle [Slagle, Chad]
Language: eng
Format: epub
Publisher: Big Cat Publishing
Published: 2020-06-26T17:35:54+00:00


Understand Your Fees

Get to know your 401(k) and other retirement accounts through and through. What are the fees being charged by the administrators? What are the fees of the different subaccounts inside the 401(k) that you’re invested in? If you have an advisor, what fees are they charging you? A lot of people get this piece wrong. They say their advisor is charging one fee. But then that advisor takes their money and throws it into mutual funds, where they’re charged another fee. So they actually end up paying twice what they thought they were.

Then, there are also “variable annuities,” which carry different fees. Per Investopedia, the different fees are:

Mortality and expense: A fancy name for a life insurance fee—this fee compensates the issuer any losses that it might suffer for unexpected events, such as death. You are paying a fee to guarantee your beneficiaries receive at least the amount you put in.

Subaccounts: Inside of a VA, you are invested in mutual funds, and mutual funds have costs that come along with them.

GMWB/GMIB: Guaranteed minimum withdraw benefit / guaranteed minimum income benefit is an optional rider that can be applied to give you a guaranteed income every year.

GMDB: With the guaranteed minimum death benefit, the insurance company is charging you a fee to have your death benefit grow at a certain percentage every year and lock in on each anniversary date.



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