Freedom Pending

Alright, I really didn’t want to make this blog all about retirement finances, and I won’t, but I opened up my news reader this morning to find an interesting take on retirement savings. Food for thought: It’s not just what you invest in, but who you invest with that could make one of the largest differences in how much money you’re living off of.

Fund management fees vary widely but generally are based on the amount of work it costs to keep them running - something volatile such as oil, metals, or tech will cost much more to run than a fund that deals heavily in bonds. Adviser fees (those charged by those that set up the funds for you and meet you face to face, in general), alternatively, aren’t really affected by what you invest in.

This is especially interesting for those of you who are either already retired or are almost there (freedom pending!) since, in all likelihood, you’ve already moved to lower risk funds as you get closer to needing the money. In this case, while fund fees go down, adviser fees may stay the same, 2 percent in some cases, still eating away at your money.

If this is your case, maybe it’s time for a change to a more self managed plan. Have any of you made changes in who holds your money as you’ve gotten closer, or entered into, retirement? Let us know in the comments!

Welcome to Freedom Pending. As time goes on I hope that this will become the site to discover all things retirement, with a focus on those making the transition from the end of one’s career to the greatest time of your lives. We’ll explore all kinds of retirement issues such as travel, community resources, news, and of course - finances! I hope you’ll join us as we grow.