Download The Findit App

Share Your Posts On These Major Social Networks

Instatag Your Posts to Instagram Facebook + Twitter

News

Wall Street: Where the House Always Seems to Win

Is the Market Stacked Against You From the Get Go?

Mesa 5/28/2019 10:00:00 AM

In February 2012 The Department of Labor published guidelines for ERISA retirement plan to disclose expenses and fees under 408(b)(2). This was an eye opener for everyone involved in the sale of mutual funds and ETFs in qualified plans. But most advisers were not awake at the wheel when the regulation went operational. It was curious to me to discover qualified plan administration and custodial care charging on average were around 25 to 29 basis points depending upon the assets under management. That seemed reasonable to me. But the biggest revelation came from the disclosures of the cost of funds themselves. For most security licensed representatives and RIAs, the fund’s prospectus was the only discussion point for internal expense loads addressed with a potential buyer. The average fund expense load cited in the prospectus is generally around 90 basis points and most RIAs were charging an additional 100 basis point. Resulting in a traditional talking point that funds and management cost to consumer are little less than 2%. But then an economic epiphany occurred when some (not all) qualified plan administrators included the transaction costs listed in the fund’s statement of additional information. For whatever reason the document is not required as a delivery item to the fund owner by the adviser. In fact, most advisers are unaware of these extra charges. The average cost cited in the statement of additional information (SAI) is around 144 basis points. The SAI costs are comprised of brokerage commissions, market impact costs and the transaction spread cost. I was floored! But the bloodletting didn’t stop there. An additional expense called cash drag, money held in cash equivalents for liquidity costs around 83 basis points. So, on qualified fund costs with the adviser fee could be around 4.46% annually. Non-qualified funds around 4.17%. This doesn’t include non-qualified funds subject to taxation on gains, which averages around 100 basis points, increasing the non-qualified costs to 5.17%. I only mention this because of the tax deferral and the exclusions ratio of deferred and lifetime annuities.

Lindahl has authored two books available on Amazon.com The Pros and Cons of Indexed Annuities and Retirement Reality Check.

Portions of this press release contain content from Lightbulb Press with permission.

More News

https://s3.amazonaws.com/findit-pictures/304618/15cbd0ce-653d-42fe-904b-60b160b30688.jpg

Risk & Reward: Everyone Has Some Threshold of Financial Pain

Most people have a predisposition about risk. It’s generally environmental and based on family upbringing. That doesn’t mean it’s necessarily right, it’s just where you are, depending upon your financial literacy. Whether you know it or not, you ...

Released On: 12/27/2019
Views: 1920

https://s3.amazonaws.com/findit-pictures/304618/5c11d9a2-2454-420f-bb42-7d9f0e9c7763.jpg

Establish Your Financial Timeline Based On Approximating Your Life Span

There are mortality averages based on actuarial statistics that can approximate the life expectancy of the general population at large. But “averages” don’t address half of those who will exceed the norms. The more data you put into determining y ...

Released On: 12/26/2019
Views: 1858

https://s3.amazonaws.com/findit-pictures/304618/2daf071e-f113-44d4-ac16-5fc18b17a4e4.jpg

You Can’t Make Good Financial Decisions Without Knowing Your Effective Tax Bracket

For most wage earners and retirees taxes are the biggest expense they’ll ever have over their lifetime. Managing your tax bill effectively is learning to become a “gamer,” by avoiding tax traps and snares along life’s journey. You have to know th ...

Released On: 12/25/2019
Views: 1777

https://s3.amazonaws.com/findit-pictures/304618/225d9f5d-44e6-4e13-b3ee-c07900ef43f0.jpg

Baby Boomers Must Create a Retirement Budget or Risk Losing Control of their Money

It’s rather stunning to discover that most baby boomers have never had a budget in their life, but they’re going to need one in retirement. Retirement may be the biggest motivator for most Americans to create a budget because retirees live month ...

Released On: 12/24/2019
Views: 1883

https://s3.amazonaws.com/findit-pictures/304618/11103acb-9d7e-46de-afaa-81db9a26dd89.jpg

Life Has Milestone Events That Have A Financial Impact

Life just happens, but there are predictable events common to most in our culture and most of those events have a financial impact. Planning for those predictable events can prepare you to meet many of these obligations. The life event checklist ...

Released On: 12/23/2019
Views: 1958

https://s3.amazonaws.com/findit-pictures/304618/32f77340-ae1d-42d4-88d7-222f83292aad.jpg

The Extension of Human Life Expectancy: The Final Frontier of Retirement Planning

The Mortality Revolution may very well be the final frontier in mankind’s quest to beat death. So far, the grim reaper has won every time, but new timelines are emerging in human longevity that are delaying the inevitable. Prepare yourself for l ...

Released On: 12/20/2019
Views: 1777

https://s3.amazonaws.com/findit-pictures/304618/99f307a7-8aeb-4972-bfbf-69d62336bb9b.jpg

Longevity Risk is its Own Risk Multiplier of Every Other Retirement Risk

Living longer is exacerbating over a dozen other retirement risks that threaten the vast majority of retirees and those near retirement. If the status quo continues, the retirement lifestyle of most seniors will be severely pared back. Watch the ...

Released On: 12/19/2019
Views: 1819

https://s3.amazonaws.com/findit-pictures/304618/b1bdcb96-7415-499f-ba7a-36c65b92ee87.jpg

Almost All Retirement Plans Need Serious Updating in Light of the Mortality Revolution

Most of the retirement plans currently operational have a significant flaw. They’ve grossly underestimated the increase in life expectancy over the last generation. But government and military pensions are in the greater financial jeopardy, becau ...

Released On: 12/18/2019
Views: 1790

https://s3.amazonaws.com/findit-pictures/304618/e64bac33-4257-4124-bcea-41317cc82cd6.jpg

Bonds Have Interest Rates, Stocks their Dividends, Annuities Longevity Credits

The law of large numbers and changing demographics of life expectancy is having a significant impact on guaranteed lifetime annuities. Annuity manufacturers are touting their alpha with mortality credits and receiving newfound interest among fina ...

Released On: 12/17/2019
Views: 1812

https://s3.amazonaws.com/findit-pictures/304618/0758fe7d-25a8-4eae-9ce9-e7ca90b52e0b.jpg

Shock! The Age Wave is Upon Us and We’re Not Ready

The last 100 years have seen a significant increase in human longevity compared to the earliest records of mankind. The spike in longevity has caught the Western world by surprise. The effects of this revolution are affecting financial planning a ...

Released On: 12/16/2019
Views: 1768

https://s3.amazonaws.com/findit-pictures/304618/c92a8a0b-8492-4325-b6d4-530642b4667f.jpg

Protecting Social Security Benefits from Taxation

There was a time when Social Security benefits were not exposed to ordinary income taxation. But over the years, small incremental steps were taken to tax the benefits. Maybe “means testing” may be implemented to shore up the vulnerable Social Se ...

Released On: 12/13/2019
Views: 1455

https://s3.amazonaws.com/findit-pictures/304618/369c956a-4a3d-4960-8a83-f992bc8b0b97.jpg

Collateralized Loans from Cash Value Life Insurance Policies & Home Equity Could Be Tax Free

Collateralized loans are not characterized as income and are not reportable, as such, on your 1040 form. And because these loans are not forms of taxable income, they are not counted for the provisional income test for Social Security taxation. W ...

Released On: 12/12/2019
Views: 1921

https://s3.amazonaws.com/findit-pictures/304618/1ba4827b-5a3c-4987-a478-0f09471640b2.jpg

Tax Management in Retirement Requires Tax Management During the Contribution Period

Retirement, as it is today, is inherently crippled by taxes. You may very well have one million dollars in your retirement plan, but Uncle Sam may own up to 40% of it. Health Savings Accounts (HSA) and Roth IRAs need to be reconsidered as a first ...

Released On: 12/11/2019
Views: 1726

https://s3.amazonaws.com/findit-pictures/304618/13faf649-2308-49d3-948d-a7f19e8064d7.jpg

Taxes in Retirement is the #1 Threat in Retirement Cash Flow

Most American workers don’t comprehend the realities of retirement until they’re a few years from retirement date, which is often too late. They’re just too busy dealing with immediate financial pressures to understand the long-haul consequences ...

Released On: 12/10/2019
Views: 1753

https://s3.amazonaws.com/findit-pictures/304618/24e22fdc-181b-40c9-8fc5-7d6bb4855405.jpg

Retirement Facts, Stats and Hacks for the Next Generation

Retirement will undergo a drastic reinvention as the newest generation redefines it's golden years in their investment habits and senior lifestyle goals. https://www.youtube.com/watch?v=RAdtMWBaseY&feature=youtu.be

Released On: 12/9/2019
Views: 1717

https://s3.amazonaws.com/findit-pictures/304618/3d46241d-4d89-4874-a7fa-5a604f1912c4.jpg

Uncle Sam Owns a Chunk of Your Retirement Accounts

Your retirement account is only as big as your tax planning strategy. Your personal exemptions and standard deductions in retirement will not be enough to offset your tax bill. Tax management must be a major component of your retirement plan. Wat ...

Released On: 12/6/2019
Views: 1821

https://s3.amazonaws.com/findit-pictures/304618/8a315712-71ea-4ca2-a116-f4e41d6c5ed3.jpg

Guaranteed Income You Can’t Outlive Can Mitigate Market & Longevity Risk

If you have longevity in your family, guaranteed income for life is a must consideration. If you think it’s reasonable that medical advances will impact your longevity, then guaranteed income for life may need to be in your retirement plan. Watch ...

Released On: 12/5/2019
Views: 1678

https://s3.amazonaws.com/findit-pictures/304618/d5d6ff6d-c69b-4aed-8d08-c0759001e726.jpg

How to Retire Happy

A happy retirement is based on math and science, not on wishful thinking and hoping things turn out right. You need to eliminate debt and risk in retirement and secure reliable income to generate the peace of mind that seniors desire in their gol ...

Released On: 12/4/2019
Views: 1424

Load More wait

Map

LifeSize Solutions, LLC

Get Directions

LifeSize Solutions, LLC

  • 236 N Country Club Dr #2
    Mesa, Arizona 85201
    United States
  • 5202614599
  • 8:00am to 5:00pm Mountain Time