Ep 84: Hidden Expenses

What kind of fees or expenses are you overlooking? We talk through common areas where costs sneak up.

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Thing’s You’ll Learn Along Today’s Journey

Just because we can’t see something doesn’t mean it’s not there. Things can get hidden in the fine print or easily overlooked. So, what kind of hidden expenses do we need to watch out for?

Mutual funds can be hard to find in the prospectus. The stated expenses are operating costs and certain fees. But the unstated expenses like the cost of turnover are harder to locate because they don’t have to be disclosed. 

Variable annuities are there to serve a specific purpose, but the expense structure tends to ramp up. It’s a product that can be overpromoted by people more interested in selling than meeting the needs of the client.

Up until recently, many of us haven’t been paying attention to inflation. Right now, inflation is high and we are feeling the sting of what that means on our finances. Inflation reduces your spending power over time, so you want to factor that into your retirement plan.

Another thing that is often overlooked and beyond your control are tax increases. This affects your IRAs and 401(k)s in retirement. If tax rates go up in retirement, you either take less net income from your IRAs or increase your monthly income to receive the same net amount. You want to be tax-efficient where you can now prepare for the future.

Finally, leisure costs may be increased as you feel more and more ready to travel and get back to the things you love. The pandemic has meant people have had to put those dreams and hobbies on hold for a few years, but now are ready to do what they most want to do. Reach out to a financial advisor to see what’s possible and how it affects your overall retirement strategy.

Listen to the full episode or skip ahead using the timestamps below to hear more about the planning process.

[0:32] Youth baseball season is back!

[1:46] Mutual fund expenses can be hard to find.

[3:11] Variable annuity are notorious for hidden fees.   

[5:40] Inflation is back with a vengeance.

[8:18] Tax increases will impact us.

[10:06] People are ready to spend on leisure.

 

Looking Back From The Mountaintop

“What kind of fees or expenses are you overlooking? We talk through common areas where costs sneak up.”

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Ep 87: Retirement Pain Points

We all want to be able to enjoy peace of mind in our retirement but there are some common pain points that we all have to work through. Let’s look at the areas of retirement planning that can cause you the most worry if you haven’t done the proper planning.

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MEET YOUR HOST...

For over a decade, Sean Lee has helped families reach and maintain their financial goals. As a trusted advisor, he coaches and assists his clients with their financial goals by focusing on the fundamentals and takes a practical and personal approach when working with them.

As a trusted professional in Utah, Sean has been featured in The Wall Street Journal’s Market Watch, The Deseret News, The Salt Lake Tribune and USA Today. He has also been featured as a local financial advisor on Utah’s NBC station, KSL 5.

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