Wednesday, October 1, 2014
Retirement Gamble: How Fees are Killing Your Savings
http://finance.yahoo.com/blogs/daily-ticker/retirement-gamble-fees-killing-savings-155036217.html. DUE 6 OCT 2014. What are the biggest threats to retirement income? What does John Bogle say about how much the average investor loses on retirement plans? What is a fiduciary? Are most financial planners fiduciaries?
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The largest threats to retirement income is that the amount of income that seniors receive after retirement would not be the amount that they initially intended to receive. Why? Because of factors such as seniors not being able to save money for the future because of low incomes or that they have not begun to save at all, their retirement income has either been decreased dramatically or to an amount that would not be able to suffice for adequate retirement settling.
ReplyDeleteJohn Bogle states that the average senior will lose 2% of funding in a course of 50 years leaving only 1/3 of the total funding for seniors prior retirement. The average investor was stated to have a one-shot with a successful retirement.
A fiduciary is the trust between the beneficiaries and the trustee. In most cases financial planners are fiduciaries, but in some occasions they could be working for economic benefits for themselves as well.
The baby boomers of the past face their largest threats from not saving enough for retirement, and the money that is forfeited to pay hefty fees, that many mutual funds charge to manage their retirement funds. John Bogle notes that at a rate of 2% interest, Two-thirds of the retirement fund will be wiped out over the course of 50 years. A fiduciary is an institution that prioritizes the clients interests over their own. According to economist Robert Hiltonsmith 80% of financial planners are not financial fiduciaries.
ReplyDeleteThe reason why this occurs in my opinion was due to the fact that saving back in the day was not as stressed as it is today.Most people assume that these organizations will use the best of their abilities to provide a respectable return but in reality,people, or the baby boomers have not recognized the process. The blame should not be put on these organizations because their is some out their that maximizes for the client. The misinformed will have to suffer through for their lack of critical thinking in the world of business.
The biggest threats to retirement income are a lack of saving, not enough money to save and those who did save for retirement face the high fees associated some of the mutual funds. John Bogle, the C.E.O of the Vanguard Group, claimed that a fund charging 2% in fees will wipe out a whopping two- thirds of a retirement in over 50 years.
ReplyDeleteA fiduciary is a person whose job requires them to put their customers interest ahead but actually puts their own interests ahead of their customers and even earn a kickback from the funds in which the invest their clients' money. According to the article most financial planners are fiduciaries, which is about 85%v of all planners.
The two biggest threats to retirement income is not saving and not paying the high fees for mutual funds made for retirement investment. The high fees rack up over the course of 50+ years, making investment seem less attractive and saving nearly impossible. John Bogle says that a fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years. Many others were skeptical with that statement but in turn found it to be true. A fiduciary is a trustee who advises investments for others. Most financial planners tend to not be fiduciaries, about 85% according to the article. Many of these people cannot be trustful because they only think of their own interests instead of others and try making profits from their clients. High fees are discouraging, and cause the baby boomers to become dependent on other means.
ReplyDeleteAccording to this article the biggest threats to retirement income is a lack of saving and fees associated with investing in funds. John Bogle writes that the average investor loses two thirds of their retirement savings when they give 2% a year over a span of 50 years. These fees come from investing in active investment vehicles like hedge funds and mutual funds. Investors can avoid these fees by putting their money into passive investment funds or indexes.
ReplyDeleteA fiduciary is someone that puts their client's interests ahead of their own. According to this article, 85% of financial planners are not fiduciaries. This number does not surprise me and I am surprised that it is not higher. Financial planners are self interested people that work to make money. I think investors are foolish when they let their financial planners dictate how large sums of their money is allocated. I believe that investors and savers should take personal accountability for their assets. They should learn the basics of personal finance so that they will not be so easily fooled. It always surprises me when I hear anecdotes of people throwing away money every month to their adviser without any regard for how it is spent. Americans have become too complacent in this regard. I personally believe that this complacency is a result of the entitlement culture in America. People have become so spoiled with the benefits they receive from the government that they believe that everyone in the world is looking out for their best interests. This honestly makes me sad. Most people are happy enough throwing away large chunks of their pay checks in taxes in the belief that the government needs it to take care of them. They have little regard for how the government actually spends this money. I believe that more Americans need to start taking their lives into their own hands.
The biggest threats to retirement income is not saving enough money and having to pay high fees to invest in certain mutual funds. When investing money into such mutual funds the fees seem quite low, but within the next 50 years the fees add up to large amounts. John Bogle describes that a fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years. A fiduciary is a trusted person who is legally appointed to hold one’s assets. According to the article it was stated that 85 percent of financial planners are not fiduciaries because they do not put their client’s interests above theirs. Fiduciaries are legally obligated to work in ways that only benefit the client, which means that the interests of the client are more important than that of their own. Whenever the fiduciary puts their own interests above the client’s and diminishes the trust, it is called a “fiduciary fraud” which is illegal and morally wrong to do.
ReplyDeleteThe biggest threats to retirement income are that “savers” are not saving enough and that much of the money the “savers” do save are being forfeited to outrageous fees that are attached to mutual funds retirement savings investment. The article gives several examples of how high fees can deplete a retirement fund to the point that it offers retirees little financial stability. The most dramatic example comes from John Bogle, he says that a “fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years”. This example was checked by Smith, whose own calculations found that this was correct. Smith developed a checklist to be used by those saving for retirement, the last item on the list is to use “a fiduciary investment advisor”. A fiduciary is someone who puts their clients needs above their own. However, about 85% of financial planners are not fiduciaries, instead, they put their needs above their clients, and may even earn a kickback from investing their clients money into certain funds.
ReplyDeleteThe biggest threats to retirement income are that savers are not able to save enough money and the fees they have to pay for investing in mutual funds with their retirement savings. John Bogle says that the average investor loses two-thirds over 50 years with 2% in fees on retirement plans.
ReplyDeleteA fiduciary is a financial planners who puts their clients interest ahead of their own. 85% of financial planners are not fiduciaries. These financial planners may even earn kickbacks for investing in certain funds and in doing are putting their interests first and may be hurting their clients.
The largest threats to retirement income according to the article would have to be the fact that Americans do not either save anything for their retirement or they do not make enough money through their income to save. Another threat would also be the money that baby boomers and other savers have to give up in order to pay the extremely high fees mutual funds charge for them to invest. This means that the retirees will have to depend on their savings and social securities which is considered a struggle rather than a supposed “easy living” they were looking forward to. John Bogle, founder and former CEO of The Vanguard Group talks about how a fund charging 2% for fees will basically take out about 2/3 of an American’s retirement fund over the span of 50 years. Bogle showed us how if Americans wanted to invest, they have only one shot at getting their full money’s worth saved up for retirement.
ReplyDeleteA fiduciary is the trust in a relationship between the trustee and the beneficiary. In this case, Smith recommends the average American to find a fiduciary investment advisor along with other recommendations in order to help the average American save for retirement. However, Smith also says how eighty-five percent of financial planners are not fiduciaries, they would rather put their own interests and needs ahead of their clients. Along with this, some of these financial planners may possibly earn a kickback from funds of their clients’ money they were trusted to invest.
The biggest threats to retirement income are a lack of saving, not having enough money to save and those other savers forfeit to pay the high fees many mutual funds charge to invest their retirement savings.
ReplyDeleteJohn Bogle is the founder and former CEO of The Vanguard Group, provides Smith with an even more dramatic example. Bogle tells Smith that a fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years.
A fiduciary is someone that puts their client's interests ahead of their own. According to this article, 85% of financial planners are not fiduciaries. Many of these people cannot be trustful because they only think of their own interests instead of others and try making profits from their clients. Along with this, some of these financial planners may possibly earn a kickback from funds of their clients’ money.
Medical expenses, travel, taxes, and Maintenance and repair are the biggest threats to retirement income. Bogle states that just 2% in fees can take away two thirds of a retirement account over fifty years. A fiduciary is a financial planner who puts the interest and well being of their clients before profit. Most financial planners are not fiduciaries, around eighty five percent according to Martin Smith.
ReplyDeleteThe biggest threat to retirement income is a lack of saving. One-third of Americans haven't begun saving at all and 57% have less than $25,000 saved. The next problem faced by people who have invested in retirement is the fees on their investments. The average fee for a mutual fund is 1.3%, which will deduct an average of $155,000 dollars. Bogle states that a 2% fee would deduct two-thirds of a total investment.
ReplyDeleteA fiduciary is a financial advisor who has a responsibility to put their clients interests ahead of their own. Unfortunately, most financial planers are not fiduciaries. 85% of financial planners are not fiduciaries.
The majority of the people in the baby boom generation either have not saved anything at all for retirement or simply do not have any money to save. This is a major problem because thousands of baby boomers are leaving the workforce each day and will have to rely on savings and social security in order to survive. The biggest threats to retirement income are the high fees that have to be paid annually with the use of mutual funds. John Bogle said that “a fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years. Most financial planners are not fiduciaries, meaning that they do not put their clients’ interests ahead of their own and may even make money off of their clients money.
ReplyDeleteThe biggest threat to retirement income in the article is people lack of ability to save and all those hidden fees on everything. Most people go through these fees because they don't know that they can avoid theses fees through passive investment funds and indexes. People who put their clients interests above their own are fiduciary. Most financial planners are not fiduciary because this is their job and they also need to feed their own families, so it becomes hard for them to put the needs of others above themselves. The fees are able to rack up over years and can take up two-thirds of your investment.
ReplyDeleteOne of the biggest threats to retirement income are the fees that mutual funds charge retirees in order to invest their retirement savings, over time the seemingly low fee adds up to an amount in the hundred-thousands. John Bogle, the founder and former CEO of The Vanguard Group says that in fifty years a two percent fee can wipe out two-thirds of a retirement fund, Bogle recommends that people use a fiduciary investment advisor, an investment advisor legally appointed to hold assets for you, to help you to save for retirement. However only fifteen percent of financial planners are fiduciaries, they don’t put their client’s interests ahead of their own.
ReplyDeleteThe largest threats to retirement income is that the amount of income that seniors receive after retirement would not be the amount that they initially intended to receive.Because of factors such as seniors not being able to save money for the future because of low incomes or that they have not begun to save at all, their retirement income has either been decreased dramatically or to an amount that would not be able to suffice for adequate retirement settling. John Bogle describes that a fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years. A fiduciary is a business person who does not put their clients best needs ahead of them and may even earn a kickback from the funds in which they invest their clients’ money. In most cases financial planners are fiduciaries, but in some occasions they could be working for economic benefits for themselves as well.
ReplyDeleteThere are many major threats to retirement income for baby boomers. However a few reign over the rest such as the percent of people who haven't even started saving which is about one third of the Americans. The other big problem is the money that retirees and other savers lose when they pay for fees that many mutual funds charge. John Bogle tells that a fund charging 2% will deplete two-thirds of a retirement fund over the course of 50 years. This is causing most retirees to live less of an ideal life after retirement. A person who puts their clients' needs before their own and do not try to earn kickbacks from their clients' investments. Most financial planners are not fiduciaries because all they care about is money and their own personal gain.
ReplyDeleteThe biggest threat to retirement funding is the fact that the retirees aren't saving up enough money. This is partly due to the high fees that come with attempting to save money in their bank accounts. John Bogle says that the retirees are losing about 2% in their retirement fees. This may not seem like much, but if you add up 2% over the course of 50 years, they have lost about two-thirds of their investment right off the bat. A fiduciary is someone who puts their client's interest ahead of their own. Unfortunately,many financial managers are not fiduciaries. Many of them will attempt to make their own profit from their client's investment. This is about a good 85% of financial managers, who will take advantage of their clients.
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ReplyDeleteThe biggest threat to retirement income is a variety of things. One being, the lack of savings from these senior citizens. Another is the fact that a lot of these citizens don't have enough money to begin with so they can't accumulate a large enough savings. Due to this their retirement incomes suffer.
ReplyDeleteJohn Bogle states that these seniors will lose 2/3 of their funding with a 2% charge in a matter of 50 years. This of course puts a damper on the lifestyle of these people, more over for the worse; making their living a lot less comfy. He reccomends that these people use fiduciaries. Fiduciaries, which are people who put their clients needs ahead of them, usually are of great help to these people, but there are few around to be available to them. There are only 15% of them around.
For the baby-boomer years, the price of retirement has become less and less of the “golden years” than of a struggle with huge threats to a livable income. The predominant reason for this is the high fees many retirees pay, these being: high mutual fund fees to invest retirement savings that – over the span of 50 years, could reach “well into the six-figures.” Another issue, as explained by CEO of Vanguard John Bogle, is that investors put themselves above their clients, using 2/3 of a client’s money as a 2% fee for a mutual fund.
ReplyDeleteMost investors – “Eighty-five percent of financial planners” – are not fiduciary investors, meaning that they don’t put their clients first. By using a low-index fund and getting a proper advisor, retirees can only hope they will be able to enjoy their golden years.
The two largest reasons for threats to retirement income are not being able to save, and fees for investing in funds. John Bogle states that when an investor gives 2% a year over a span of 50 years, the will lose up to 2/3 or 66% of their retirement savings.
ReplyDeleteA fiduciary is someone that puts their client's interests ahead of their own. In the articles, it states that only 15% of financial advisors are fiduciaries. This seems like such a low number, but in this aspect it's actually quite high. Most people nowadays only care for themselves and don't want to benefit others. Especially when it comes to money, people will do whatever it takes to get rich and its a gruesome battle to the top. 15% seems like such a large number now when you look at the logic of people and the current issue with the economy. People are selfish and will put their own needs and desires before anyone else.
The price of retirement has only grown, diminishing any possibility of returning to a livable 401k as heavy fines replace anything “golden” about the golden year. In fact, the major threats to retirees has been the high mutual funds that, ironically, were set in place to better allocate the investments of people trying to make money, with the consequence of high fees – going as far as 2% over 50 years – that counterattack this hope. Especially with so many baby-boomers retiring – $8,000 every day – it’s scary to think that the amount who are retiring aren’t being replaced by our youth, and thus many investors may try to exploit the older population, so dependent on these funds. It’s a beneficial idea to focus on low-index funds and get involved in one’s personal finances so that managing companies cannot bypass you. Bogle brings this to the forefront, explaining that 2/3 of a client’s money will be gone if a 2% fee on a mutual fund lasts for 50 years of retirement – reaching into the six figures no doubt.
ReplyDeleteWhat’s needed is a fiduciary investor, which unfortunately only compromises about 15% of the current investors. Fiduciary investors put the client first, which has clearly not been seen with the exploitation of mutual fund fees in our baby-boomer retirees.
Not enough retirement money, and high fees from mutual funds affect the currently retiring baby boomers. Jhon Boggle says that a person at two percent interest over 50 years could loose u to two thirds of their investment. He also says investors have only one chance to invest their monay right, and that to do si they have to know what they are investing in and the fees that come along with the invesments. Fiduciaries are investors that put your needs and your well-being firs, and almost 85% of all financial investors are not fiduciaries.
ReplyDeleteThe largest threats to retirement income are many baby boomers are not saving enough and when they do they are not making enough on their investments due to fees. John Bogle says that says that most retirees would lose 2/3rds of their retirement income in fees alone. A fiduciary investor puts clients ahead of their own interests . For example many investors receive kickbacks for putting their clients money in a certain stock, a fiduciary investor would not do this. Most financial planners are not fiduciaries due to the fact most investors, due to human nature, look to do what is best for themselves and choose to get kickbacks from companies. This leads to 85% of all planners to not be fiduciaries.
ReplyDeleteThe major threat to retirement income is not planning, not saving enough money and having to pay high fees to invest in certain mutual funds. When investing money into such mutual funds the fees may seem quite low, but within the next 40 years the fees add up to huge amounts. John Bogle describes that a fund charging 2% in fees will wipe out two-thirds of a retirement fund over 50 years. A fiduciary is a trusted person who is legally appointed to hold one’s assets. According to the article it was stated that 85 percent of financial planners are not fiduciaries because they do not put their client’s interests above theirs. Fiduciaries are legally obligated to work in ways that only benefit the client, which means that the interests of the client are more important than that of their own.
ReplyDeleteThe biggest threats to retirement income for these baby boomers consist of their lack of savings and high fees associated with investing in these funds. One-third of Americans have not even begun to save for retirement, while one-half claims “they don’t have enough money to save.” In addition to these disruptions for retirement savings, mutual funds are charging an average 1.3% in fees alone, annually. As Martin Smith expressed, although the current numbers do not seem significant, in about 50 years, the fees will pile on and could achieve “well into the six-figures.”
ReplyDeleteJohn Bogle stated that the average investor loses “two-thirds of their retirement fund over 50 years” due to their 2% funding, when looked at over a span of 50 years. This will leave seniors with only one-third of the total funding they entered with. Smith was doubtful of these significant numbers, then calculated them himself and found that these numbers were indeed true.
A fiduciary is a financial planner who puts the interests of their clients ahead of their own. According to economist Smith, 85% of financial planners today are not fiduciaries. These people cannot be trusted because since they are not fiduciaries, they would not look in the best interests of their clients. Rather, than looking for the best interests of their clients, they would rather be earning a “kickback from the funds in which they invest their clients’ money.”
The biggest threats to retirement income are the fees placed on retirement investments. Fees of 2% may seem small at first, yet can quickly add up and take away a huge chunk of cash that the investor has placed into the investment. The article states that the average fee is about 1.3%, which can add up to “…well over 56 figures…” after 50 years. The next issue comes from a lack of savings. Most Americans have nothing saved for their retirement and while some have started, it will not be enough to sustain them.
ReplyDeleteA fiduciary has the responsibility of being a trustee, whose job entails a duty solely in the client’s interests. 85% of financial planners are sadly not fiduciaries. Most financial planners are not fiduciaries because their place their own interests ahead of the clients.
1The biggest threat to retirement income, is the economic down turn and the increasing prices of things. asocial security is about to be non existent! its projected you need 1.6 million to retire at 65 years old. The aver gave senior investor will louse 2% of funding over 50 years A fiduciary is someone that puts their client’s interests ahead of their own. According to this article, 85% of financial planners are not fiduciaries.
ReplyDeleteThe biggest threats to retirement income inflation and high rates on fees associated with mutual funds. John Bogle says a fund charging 2% on fees will wipe out 2/3 of a retirement fund over 50 years. A fiduciary is a financial planner who puts his clients' interests first, but most financial planners (85%) are not fiduciaries.
ReplyDeleteSome of the main threats to retirement incomes are not saving enough money and the high price people pay to save their money. People will pay high fees on many of their mutual funds. People will end up losing a lot of money becsuse of these fees. John Bogle says that the average investor looses about two thirds of their retirement funds over 50 years because of the fees. A fiduciary is an investor who puts puts their clients' interests ahead of them. However most (85%) financial planners are not.
ReplyDeleteAccording to this article the biggest threats to retirement income is a lack of saving and fees associated with investing in funds. John Bogle says that says that most retirees would lose 2/3rds of their retirement income in fees alone. A fiduciary is someone who puts their clients needs above their own. Unfortunately, most financial planers are not fiduciaries. 85% of financial planners are not fiduciaries.
ReplyDelete