Greenville Life Spring 2020 - Page 11

Impacting Your Current Investment Returns? for their investments and only 16 percent who work with an investment professional have asked how fees and commissions impact their portfolio’s returns. A seemingly small difference in fees can make a potentially big difference in your returns, especially over time. It’s important to understand, however, that not all investing fees are bad. It’s really a matter of understanding the value you are getting from what you pay. You might be willing to pay a slightly higher fee for different kinds of services that add value, such as more personalized financial planning or a higher-touch relationship. Maybe you’re a small business owner with a specialized set of financial needs that require more help and attention from a financial professional. By the time this article is published we will have had over 4 months of extreme volatility in all areas of the market. During these times, professional management may be worth the cost. However, you still need to know and understand the cost structure to your portfolio. Only then can you truly appreciate the value being added (or not) by the products, manager and/or your financial professional. Leslie C. Killgore is the Independent Branch Leader at Charles Schwab in Greenville. She has over 35 years of experience helping clients achieve their financial goals. Some content provided here has been compiled from previously published articles authored by various parties at Schwab. 1 Today’s Engaged Investor study was conducted by Koski Research from April 8-17, 2013, among 1,000 Americans ages 25-75 with $250,000 or more in investable assets and who are highly engaged in their lives. The study was conducted using an online panel of investors. The margin of error for the sample is three percentage points. Information presented is for general informational purposes only and is not intended as personalized investment advice as individual situations vary. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified professional. Investing involves risk including the potential loss of principal. It’s also good practice to regularly review your statement and ask your financial advisor directly about the different fees they charge, why you’re paying them, and how they are impacting your financial goals. Starting with these questions will help you become more knowledgeable and confident about your finances and the value you’re receiving. But don’t stop there! Keep asking questions and stay engaged, because these can be your most valuable assets when it comes to achieving long-term financial success.