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4 Ways to Help Keep Fees and Taxes From Eroding Your Nest Egg

Most investors don’t realize the number of fees and taxes associated with their investments that eat away at the gains and money they’ve worked so hard to stash away. If you’re with an IRA custodian now or are thinking about transferring an IRA account, make sure you understand their IRA fee schedule. It’s worth it to review not only your investments with your financial planner or custodian, but also the costs associated with them.

Other Considerations:

  1. Look for a second opinion about your fees if you have to, especially if the fee schedule is cryptic or hard to understand.
  2. You should do your research on the fees you are charged for your investments for typical activities like buying and selling.
  3. You should work toward making your investments tax efficient. You don’t want the taxes to take a bite when you withdraw your money.
  4. Lastly, ensure your financial advisors are held to a fiduciary standard, which provides transparency with regards to their motives.

Key Takeaways:

  • An investment adviser notes that as many as two-thirds of those seeking his advice are paying excessive fees.
  • Often, they feel indebted to their ‘nice’ brokers and don’t want to call them out for high prices, or even look into the possibility.
  • It’s important to examine your statements proactively for costs and to look at the tax-efficiency of your investments. After all, investing is not just about the money you grow in an investment, but also it is about being in the best tax favorable position possible, so you retire with more of your hard-earned money.

“At least three-quarters of the people who come to see me are paying more in fees than they realize. Over the years it could add up to tens of thousands. But there are some things you can do about it.”

Source: Kiplinger

Sunwest Trust does not sell financial assets or provide tax or financial advice. The info presented is for educational purposes only. Please seek a licensed financial planner or competent tax professional for specific advice about your specific investing needs.

Terry White

About Terry White

I started my business career after getting my degree in Accounting from the University of New Mexico in 1983. My first job was as a controller for a local title company, and in 1987 I started First Financial Escrow, Inc. Over the years I played a part in several startup companies including First Financial Equities, Inc., First Financial Trust, Inc., First Financial Marketing, Inc. and Asset Ventures, Inc. In 1997 First Financial Escrow, Inc. was able to purchase the escrow accounts from Sunwest Bank and changed its name to Sunwest Escrow. As the market changes, Sunwest has grown and changed along with it. Besides my wife, Sheila, we have three boys, two daughters-in-law, one grandson, another grandson on the way and a future daughter-in-law. Sunwest is my passion, and I enjoy coming to work every day to see what will happen next. I enjoy fly fishing, spending time in Colorado, biking and watching my boys play soccer.