In this week's Arista Advice, Paul L. Moffat of Arista Wealth Management talks about the importance of fees and things to look out for when investing.
Hello, welcome to this week’s Arista Advice. Hope you’re well.
The question of the week is - do fees really matter, Paul? The obvious answer is yes.
Did you know that 73% of Americans do not know how much they're paying in their 401(k) fees? Do you know what you're paying in your 401(k)?
You should never invest in anything unless you know how it works and that you can then explain it to somebody else, and those are just the big pieces.
This includes your investment fees. If you understand what you're paying in life for services, you'll be better off financially in many years and even in the short-term.
The best way to start your retirement journey is to get invested in your company's 401(k) plan, and if they don't have one start with an IRA, start with a Roth, but take responsibility, financial responsibility, to start your retirement journey on your own. If your company then has one and you're eligible, begin investing in yourself and in your future. We see many employees that are stuck in life. They're stuck with thinking that they don't make enough. They're stuck in thinking they want something more. They don't have money saved, and they get paralyzed.
Become unstuck and start putting some money in an envelope and money aside on your way to a secured retirement.
Our Arista Advice: Look for value. Look for a fund that has reasonable expense fees. Focus on the long-term, and number three understand your overall cost and what you're paying for, and things will be better.
Hope you’re well. Have a great week, and we look forward to talking to you soon.