Here's the news flash: "WALL STREET DOES NOTHING FOR FREE."
Having said that, it is understandable because investment management services are not charged in the same way as just about everything else in our universe (as well as other universes that support life) is charged.
A great explanation is given at:
"A Simple Change That Would Help Millions of Investors" by Morgan Housel at The Motley Fool.
In the article, Housel presents some sobering facts:
- Fidelity earns more per customer than Apple
- the average two-earner couple will pay $155,000 in 401(k) fees over their lifetime
- According to a study by industry researcher LIMRA, 22% of 401(k) participants think they don't pay any fees or expenses
- Ned Johnson, the son of the company's founder, is worth $9.3 billion, making him the 47th richest man in America.
I, along with many others, have long been appalled at Wall Street's exploitation of America's workers via the 401(k)s and other investment services. By taking advantage of a complex situation, Wall Street has, IMHO, robbed workers of a goodly portion of their nest egg and contributed significantly to what will soon be seen as a retirement crisis.
My approach has been to insist that my services be paid for by clients writing checks. A bit of extra work on the part of the client? Sure, but they know exactly what they are paying for my services.
I found the above article at:
Dough Roller Money Tips
a site that presents articles from around the web that are of interest.
News flash for the bank robber: it is easier to rob with a pen than with a gun.