Excessive fees can quietly erode returns in a portfolio, and Daren Blonski, our Managing Principal, walked through where those costs hide for U.S. News & World Report's article, "What to Know About Investment Fees". Daren's advice on retirement accounts: don't leave your money behind when you change jobs, since leaving funds in a former employer's 401(k) means leaving them under the control of a company you no longer work for. He also cautioned against over-diversification, noting that many investors spread their money across too many mutual funds and ETFs when a broad-based fund like the S&P 500 would do the job just as well.
Key Takeaways
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Leaving a 401(k) with a former employer means leaving your money under that company's control. Rolling it into an IRA keeps you in control.
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More funds isn't automatically better diversification. Owning too many overlapping mutual funds and ETFs can add cost without adding real benefit.
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Watch for less obvious costs too. Wide bid-ask spreads, order-flow sales, and low cash-sweep rates can quietly reduce returns even when the stated fee looks small.
Keeping costs low and a portfolio intentional is core to how we manage money for clients. Learn more about our Investment Management services.
Read the full article, What to Know About Investment Fees, on U.S. News & World Report.