The 21 Questions You’re Going to Need to Ask About Investment Fees

The 21 Questions You’re Going to Need to Ask About Investment Fees

           Source:  The New York Times


So much hand-wringing over such a simple proposition: When a financial professional gives you advice about the life savings in your retirement account, that person ought to act in your best interest.

It took several years for this so-called fiduciary rule to gain approval — firms are supposed to begin following the new rules in April — thanks to pushback from people in the financial services industry. And then, in the course of a week, we’ve seen President Trump tell the Labor Department to study this uncontroversial (and already much-studied) proposition, which he wants to upend. A few days later came a big loss for industry players who challenged the legitimacy of the rule in Texas, where a federal judge ruled against them.

But let’s put the focus back where it belongs: not on politics or the law, but on you. The best way to understand what the fiduciary debate is about — and to protect yourself — is to view this discussion through the lens of fees.

Every time you do business with people in the financial services industry, ask them this: How much money are you making, and what are the different ways you are making it? 

If only there were a simple answer to this question all of the time. All of this fiduciary wrangling got started in large part because there has rarely been a simple answer in many parts of the industry.  

“The fiduciary rule ultimately comes down to the fact that some people are making a lot of money at the expense of other people who have no idea how much their adviser is getting paid,”.... Read about all 21 questions to ask regarding investment fees.

This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.