There was a good piece on PBS’s Frontline Show last night. It discussed how ill prepared Americans are for retirement as well as how financial industry fees really eat into your retirement savings over time.
The real shame in this is that most people saving for retirement do not have a clue how much they are paying in fees. In the Frontline piece, they used an example of 2% per year. In my research, a more realistic average is 1.25% per year. My firm charges 0.8% per year. The ETF’s touted by John Bogle (CEO of Vanguard Funds) run around 0.3%. My newsletter, Indexing Advice, lists Vanguard Funds as the investment vehicle of choice, but I do so based on their low fees and track record. I do not receive any compensation for those recommendations.
If you missed it, I found this article that summarized the Frontline piece or you can watch the full 53 minute episode.