142. “We have a $2.3M net worth—but we cut coupons”
Money For Couples with Ramit Sethi
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Understand the Hidden Costs of Investment Fees
Investment fees can significantly impact financial growth, and it's essential to understand both explicit and hidden costs. Advisors often charge a percentage of assets under management (AUM), typically around 1% to 1.5%, but additional backend fees may exist. It is crucial to clarify the type of investment funds being offered, such as front-loaded funds, which deduct their fees upfront. Although advisors may argue such fees are beneficial for long-term investment strategies, investors should remain vigilant about overall costs and ensure they align with their long-term financial goals.
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