A listener asks: "I was reviewing my Individual Retirement Account with my advisor and he said that there was a .25% maintenance fee, which is the lowest around. I was confused about what this meant since you have talked about expense ratios in the past. Can you explain?"
Matt and I discuss what this fee is, but more importantly what does this mean for you? You might be losing out of tens of thousands or even hundreds of thousands of dollars that could be in your pocket. I'm certainly not saying that financial advisors shouldn't be paid or don't provide value - I'm one! But I do want you to understand what you are paying because so many times the fees are completely hidden.
An account maintenance fee is an amount that you pay based on multiplying a small percentage times your account balance. That could add up quickly depending on the balance! And what's more, that small percentage could mean many thousands of dollars lost from compounding in your favor. But worse, the investments inside your account could be costing you even more on top of that fee!
Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/
