| You are receiving this email because you signed up to receive our free e-letter, or you purchased a product or service from its publisher, The Oxford Club. If you are having trouble viewing this email, click here to view it in your browser. |
|  | Brought to you by The Oxford Club | Monday, August 29, 2016 |
| | The Greatest Commodity Shortage in History
 It's no secret the world faces shortages in many commodities. The world's diminishing supply of everything from cocoa to coffee... lithium to lumber... phosphate to plutonium... silver to sugar... is of great concern. But there's an even bigger and more imminent commodity shortage at hand that no one is talking about.
Details here...
SPONSORED | | |
Stop Your Employer From Sabotaging Your Retirement Today
 Financial services firms are ripping off investors. That's no surprise. What is surprising is that they're ripping off their own employees...
To the tune of millions of dollars in excessive fees.
Last week, Morgan Stanley (NYSE: MS) employees sued the company for mismanaging their retirement accounts. They said Morgan Stanley was lining its own pockets by charging excessive fees in employee 401(k) accounts.
But employees of financial services firms aren't the only ones getting ripped off. If you invest in an employer-sponsored plan, there's a good chance that your 401(k) savings account is at risk too.
Often, plan administrators set things up so that they profit handsomely from fees charged at the expense of your returns. Many employers don't know or don't care.
Their negligence could be eating away at your bottom line. Luckily, you can find out if your employer-sponsored retirement account is sabotaging your retirement...
And there are steps you can take to protect your money right now.
Audit Fees Incurred
More than 70% of Americans don't know that they pay fees on their investments. So make sure to read your annual or semiannual retirement account statement and look for excessive charges eating away at your retirement nest egg.
Most plan administrators are required to give you a fee disclosure. This document details the three types of expenses commonly incurred.
"Plan administration fees" are charged for record keeping, accounting, legal and administrative services. Sometimes the administration fees are deducted directly from investment returns or the plan's assets. Other times, employers cover them.
"Investment fees" are the largest expense. They are charged as a percentage of assets. These fees cover management of the plan's assets. Mutual fund management and marketing fees often make up the majority of investment fees.
"Individual service fees" are charges for optional 401(k) features such as the ability to take out a loan against your account. | | Get In on "Hyper-Growth" Companies Starting With as Little as $100
Our research team has spent the past year vetting more than 2,500 exciting young new businesses. They've been on the hunt for the next "hyper-growth" winners like GoPro, which would have turned a $100 stake into about $133,000... Airbnb, where a $100 stake from 2009 is now worth $797,000... and Uber, which turned $100 into $1.25 million over the past 7 years.
Today, their research is READY and waiting for you. If you've ever wanted to get in on the fastest-growing private companies, usually starting with as little as $100, you'll want to see what they've uncovered. Details here. SPONSORED | | |
After identifying the fees you're incurring, you'll want to figure out if you're paying too much. The best way to do this is by calculating your 401(k) plan's expense ratio.
Simply add up all of the fees and divide the number by the value of your account. The average 401(k) expense ratio is around 1%. Anything higher is a red flag.
Explore More Cost-Efficient Alternatives
A high expense ratio can put a big dent in retirement savings. Consider this example:
A 35-year-old employee with $25,000 in their 401(k) can expect it to grow to $227,000 in 35 years. That's assuming a 7% annual return, low 0.5% expense ratio and no additional contributions.
But if that same account is charged 1.5%, the balance in 35 years would be just $163,000. The extra 1% in fees reduces the final account balance by a whopping 28%!
If your fees are too high, explore your plan's lower-cost investments. Often, your choices will change from year to year, so you should be able to find new options with more reasonable fees that still work with your goals and level of risk tolerance.
Another solution is to reduce your contributions to an employer-sponsored plan and open up a separate IRA account. This way, you can receive any matching benefit offered by your employer and save any additional contributions for a self-directed IRA that offers better choices.
I've said it before: Nobody cares more about your money than you do.
So dig into your plan specifics, and do your homework yourself. Don't count on your employer-based plan to offer what's best or most cost-efficient for your particular retirement goals. Watch your expense ratio, and consider more cost-efficient options if you're paying too much.
Good investing,
Kristin | Recent Articles From Wealthy Retirement |
|
 |
|
|
| |
The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
No comments:
Post a Comment
Keep a civil tongue.