David@valuealigned.com
1-732-800-2375

Berk's Blog

Separately Managed Accounts: The Keys to Your Wall Street Prison Cell

fee

“All investments – including those in IRA, 401(k), and brokerage accounts – have fees.”

I normally ignore pithy quotations highlighted on financial websites, but this one from FeeX caught my eye.

It had stolen the words right out of my mouth, without even giving me credit!

Just joking – I have no copyright on my crusade against the mutual fund system. In fact, I’m thrilled that FeeX is spreading my message about the layers of hidden mutual fund fees costing investors their retirement savings.

First, FeeX exposes the mutual fund system as a sub-category of Wall Street, which depends on mutual fund investors for the bulk of its business:

“If you invest in mutual funds, these funds carry an expense ratio. This is a small percentage – anywhere from a fraction of a percent to as much as 2% or more of your balance – that is skimmed off of your return. Even NO LOAD funds carry expense ratios.”

Then, FeeX warns investors about fees associated with exchange-traded funds.

“ETFs have expense ratios too…”

No kidding! ETFs require major rebalancing of risk for taxes. Not to mention fees for the brokers who make fund recommendations.

Besides echoing my evangelist message, what does FeeX do? Through a free online process, it helps investors identify and reduce the fees imposed on them by the Wall Street prison guards.

What most investors don’t realize is that the one way to permanently reduce fees is to own stocks of great companies directly via separately managed accounts.

SMAs are the prison cell keys that Wall Street hopes you’ll never find. But I found those keys decades ago – long before FeeX and similar services cropped up online.

Investors ask me daily if I can identify their current mutual fund fees for free. Yes, I can! But why stop there when you can own stocks of great companies through SMAs?

Looking for a personal touch to retirement investing? I’m at your beck and call. But if you prefer a “robo” approach, I’ll still manage your account like a well-oiled machine.

How much longer is your Wall Street prison sentence? Own stocks of great companies directly via SMAs – with just a 1% flat fee for all services. Call me at (732) 800-2375 today!

 

Image Credit: oleander l morguefile