You may have heard the terms “fee” and “cost” used as synonyms, but there is a distinction that could make all the difference in the world of investing. In this episode, Stephen Stricklin and Paul Brock discuss three major misconceptions many people have about fees and costs. 

A fee is something you can “see,” usually in plain sight, and made known up front, sometimes deterring an individual from taking the plunge. A cost is something you can “feel,” usually not laid out clearly in a statement, but you’ll feel the hidden costs in your returns. 

The three most popular money saving misconceptions are: investing on your own, that your 401(k) has no fees, and investing online with a robo-advisor, all of which lead people to believe that they are cutting losses associated with various service fees. Stephen and Paul expose these myths with facts and statistics, showing the fees of working with an advisor actually yields greater return than the costs associated with the three methods above. 

All investments have a cost, and value determines worthiness. The value of having a financial advisor when investing is highly beneficial, and the stats show it is worth it. 

Stephen and Paul Discuss:

•  The difference between fees and costs. A fee is something that you see, a cost is something that you feel.
  
• The myths and misconceptions of fees and costs when it comes to investing.
  
• Misconception #1 “I can save money by investing on my own, and pay no fees”
  
• Vanguard study 
  
• Misconception #2 “I can save money by keeping money in the 401K, where there are ‘no fees’” 
  
• Misconception #3 “I can save money by investing online through a robo-advisor, because there are ‘no fees’”
  
• Dalbar study 
  

Resources:
Don’t forget to email info@simplifyyourretirement.com if you have any retirement questions you’d like Stephen and Paul to answer in an upcoming episode OR to get a free Copy of Stephen’s book, Simplify Your Retirement!
info@simplifyyourretirement.com
http://www.simplifyyourretirement.com/book
https://www.investopedia.com/

Connect With Stephen Stricklin:
stephen@wisewealth.com
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Simplify Your Retirement
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