
This includes mutual funds, insurance, structured notes, limited partnerships and annuities. “Cost can go as high as 10 percent of your initial investment to 5 percent a year. When you consider that an average return may be 7 percent, subtracting 5 percent in costs leaves a paltry 2 percent return to the investor,” points out certified financial planner Richard Kahler of the Kahler Financial Group.
To someone investing $500,000, the cost of a bad investment could be $50,000 up front and $25,000 a year. “Of course, all of that is buried in fine print and not openly disclosed to you if you are dealing with a broker,” he adds.
You can read the rest of the article and Rick’s advice here.