Here’s an informative article on how people waste their money found in The Faster Times. Sheryl Nance-Nash interviewed several money experts on ways people twitter away their hard-earned cash. One of the many areas she covers is advising people to look hard at investment products for hidden fees and commissions.
This includes mutual funds, insurance, structured notes, limited partnerships and annuities. “Cost can go as high as 10 percent of your initial investment to 5 percent a year. When you consider that an average return may be 7 percent, subtracting 5 percent in costs leaves a paltry 2 percent return to the investor,” points out certified financial planner Richard Kahler of the Kahler Financial Group.
To someone investing $500,000, the cost of a bad investment could be $50,000 up front and $25,000 a year. “Of course, all of that is buried in fine print and not openly disclosed to you if you are dealing with a broker,” he adds.
You can read the rest of the article and Rick’s advice here.