Finance Assistance

Even sophisticated investors make costly investment mistakes. According to financial pros, here are three of the big ones:

MISTAKE: Paying high fees.
Ask your broker or money manager for a complete breakdown of all charges you’re paying—hidden and disclosed. Find ways to reduce these costs. Every dollar removed from your portfolio is a dollar that could have been invested and growing over time.

MISTAKE: Ignoring spousal plans
Your retirement portfolio and your spouse’s portfolio should work together. Decide with your spouse whether you want similarly allocated portfolios or whether they should be treated as one large portfolio and allocated accordingly. Look at both your 401 (k) plans and see which has better offerings in different categories. For example, if your spouse has a better international offering, use that one for this allocation.

MISTAKE: Owning dud annuities.
Be cautious about buying a deferred annuity. Besides the annual costs, they have surrender charges if you bail within a few years of your purchase. A deferred annuity is appropriate only after you max out all other plans and don’t plan to take withdrawals for at least 15 years. If you already own a high-cost deferred annuity, make a tax-free exchange to a lower-cost annuity such as one from Vanguard or Peoples Benefit under section 1035 of the tax code.