Here are some retirement basics which need repetition because of the spate of poor advice investors keep getting from both the lay and financial media.
Much of that advice comes through public relations organs of financial advisers with an axe to grind. Articles you see or hear on retirement planning are primarily marketing tools, created to influence individual investors to invest in certain funds or with particular advisers.
They attempt to satisfy normal fears investors have of insufficient funds for the education of children, of not having a comfortable retirement, and simply, the fear of outliving their savings and investments.
But these fears are actually leading investors into a trap.
They are getting expensive advice for the most part. They may need estate planning and tax planning only if the size of their assets warrant it.
Otherwise, why pay 2% or more for a financial adviser who will cost them as much as 20% or more of their annual investment income? That adds up to a huge chunk of assets over the years.
Furthermore, investors need the lowest cost indexed mutual funds or exchange traded funds (ETFs) in which to invest.
Retirement basics can be quite simple for the average investor who avoids the hoopla.
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