Rockbridge Named #81 on CNBC's Top 100 Fee Only Wealth Mgmt Firms List
Mar 11

Tony Farella in USA Today!

by

The USA Today published an article by our one and only Tony Farella. (Link)

The full text version is shown below.

 

Is it worth paying for 401(k) advice?

Christine Dugas, Money Watch columnist5:13p.m. EST March 9, 2013

Money Watch, a personal finance column that runs every Saturday, features a financial planner from the National Association of Personal Financial Advisors answering reader questions about saving, protecting and growing your money. To submit a question, e-mail USA TODAY personal finance reporter Christine Dugas at: cdugas@usatoday.com.

Q: My employer offers a service in which an investment company manages my 401(k) savings. The cost is an annual rate of 0.25%. They have a chart that says people normally do 3% better on their investments with their help. I would prefer to see independent results. But being ignorant of the markets, would I be better off getting help? I’m at least 15 years from retirement.

A: Many employers are adding professional investment management services to their retirement plans. I’ve seen the cost of these services range from 0.25% to 1.0%, so it appears that it’s a pretty good deal for you.

Studies do suggest that investors who use advisers do get better returns than individuals going at it alone, but there is no reason that should be true if an investor does some basic research. It’s not magic. Advisers usually have confidence and discipline that are key factors in successful investing.

Most people do not have the time or interest in managing their own portfolios. Individual investors can be their own worst enemy by making emotional decisions about their investments. Those decisions include bad timing (getting out of the market during a crisis), chasing hot sectors of the economy or jumping into the latest investment fad being touted by the news media.

A good investment adviser can remove the emotion and focus on the important factors in creating an appropriate retirement portfolio.

Ask yourself these questions:

1. Do I know how much I need to save each pay period?

2. What is the total amount I need to save before my retirement?

3. What return do I need to reach my goal?

4. Do I have a diversified, balanced low-cost portfolio?

5. Am I taking the right amount of risk to reach my goal?

6. Do I have the discipline and confidence to stay the course when things get rocky?

If you don’t know all six of the answers, then an independent adviser could be quite valuable. Armed with the correct information, the adviser can construct a well-diversified portfolio that’s specifically designed to give you the best chance of maintaining your lifestyle in retirement.

Anthony Farella, NAPFA-Registered Financial Advisor

Rockbridge Investment Management, Syracuse, N.Y.

You Might Also Like

Other articles filed under News

Market Commentary – October 2018

October 22, 2018
Stock Markets For the last quarter, stocks are up except for Emerging Markets, which were close to flat. Domestic stocks are seemingly shrugging off the uncertainties of increasing interest rates, trade wars and tariffs. Year to date, an Emerging Market...
Continue Reading

Is Your Cash Earning Interest?

October 16, 2018
Interest rates are rising, and yet you may not be earning much on your cash.  As financial markets finally begin to reflect a recovery from the crisis of 2008-09, the brokerage industry is changing the way they handle customers’ cash,...
Continue Reading

Understanding Bond Returns

October 12, 2018
We had several clients this year reach out to ask how bonds were performing in their portfolios. These are great questions, so we created a few items to address what you see in your statements.  Some people notice they have...
Continue Reading

New Tax Law Makes Bundling Gifts to Donor-Advised Funds Attractive

October 9, 2018
“Give, but give until it hurts.” - Mother Teresa -    I don’t think Mother Teresa paid much attention to the tax code, but her quote is unusually prescient for 2018 taxpayers.  The changes have made it unlikely to get...
Continue Reading

What to Ask Your Financial Advisor

September 20, 2018
How does/and how much does your advisor get paid? Fees matter.  It is important to know how much you are paying and the value you receive for that payment.  If you're paying 1% or more for only investment management with no...
Continue Reading

‹ Back to Blog Home

getting started is simple

315.671.0588 info@rockbridgeinvest.com Schedule a meeting Sign Up for Our Newsletter