CricInfo.com – In the US, retirement plans have gone up over the last decade.
But are the financial plans they provide really helping?
The question has come up frequently during the financial crisis.
Some retirement experts argue that it’s the cost they have to bear in a market crash that makes people want to save.
But in an article for CNN Money, a financial consultant, financial expert and former investment banker, all argue that’s not the whole story.
“It’s a question of cost, it’s a market-wide question and a financial adviser can’t really do much about it,” said financial adviser Chris Hines.
“The way the market operates is you get an idea of what your costs are and what the market is asking for and then you’re trying to figure out what’s the right price for that and that’s what we do in our business.”
And the right answer is to look at the underlying cost and that is the total value of the portfolio, the total costs you’re going to be paying for that asset.
“The costs of investingIn recent years, some retirement advisers have raised the prices of many products.”
There’s a tendency for people to say to themselves, well, it might be cheaper to take a chance on something new than to buy a 401(k) that’s just a bunch of bad options,” said Chris Hynes.
The problem is, these products often come with other costs, including the need to maintain them.
Hines explained that this is a classic example of an asset allocation strategy.”
You have an asset and then there are costs associated with the management of that asset,” he said.”
In our case, we are putting the assets into a 401k, we have a couple of other costs associated there as well, but we’re paying for them as well.
“If you want to find out more about the financial advisor advice we provide, including our picks for the best financial products, we recommend contacting us.