Watch Out for Hidden Investing Fees and Commissions
An investment analysis can help ensure you're not losing money to unnecessary costs in your portfolio.

Right now, you're taking your hard-earned money and putting it into stocks, bonds, mutual funds or other investments with one purpose in mind: To make that cash grow for the future.
You're willing to do without this money, maybe scrimping for a while, hoping to dip into it when a child's college-tuition fees are due or when you're ready to retire and travel the world.
But if you're not careful, those investments can cost you more than you expected, possibly reaching into hundreds of thousands of dollars in potential earnings. It's a familiar caution: What you don't know can really hurt you.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The U.S. Department of Labor estimates that investors as a group lose more than $17 billion each year through high fees and hidden costs. Congress passed legislation this year to try to rein in that number, making financial advisers and investment consultants more accountable for decisions they make on your behalf.
Hidden fees attached to investments are everywhere. Mutual funds, for example, can appear to be safe bets, but dividends can come minus commissions and expense ratios. Though they may seem minimal, if you know about them at all, they can add up to be a substantial cost over time.
How you buy them and who you buy them from can make a difference in the money you can save, and it may mean the difference between a month touring France and Italy and a week in a causeway motel.
We can't control the market, especially now with more volatility expected in the near future, but being able to control what you can should pay off in the long run.
Many people are unaware that the cost of their investments can exceed 1.5% a year. And, in my opinion, these costs are unnecessary in most cases. All they have to do is take a look at those internal costs and see what can be reduced or even eliminated. Many times, the costs are commissions, sometimes undisclosed, paid to brokers and advisers.
The new law, which takes full effect in 2018, says your financial advisers could face litigation if they can't prove their advice was in your best interest rather than their own. This definitely will clip some advisers' wings.
Either way, to me the best plan is this: Hire a financial adviser who is a fiduciary to analyze your investments and make recommendations on how to go about tweaking your nest egg so more money is coming in and less is going out in unnecessary, internal costs.
For most people contributing to retirement funds, all this investing stuff is incredibly difficult to understand, so most go to advisers, brokers and analysts for advice. But there are differences among those financial professionals, differences most people haven't a clue about.
A few years ago, TDAmeritrade conducted a survey that revealed some head-scratching statistics:
- 54% of those interviewed believed that all their brokers and investment consultants were acting in the clients' best interest, when in fact that wasn't the case. Brokers and certain other financial professionals are held to a suitability standard, meaning they aren't required to act in the best interest of the client, but rather are required to make recommendations that are suitable to the client's specific situation.
- 74% of respondents didn't understand the difference in the obligations of financial professionals acting under a suitability standard and those acting as fiduciaries. Fiduciaries are governed by a strict code of ethics and the law requires them to act in the best interest of their clients. They are required to report commissions, conflicts of interest and any fees charged.
- 79% of those surveyed just wanted to place the decision-making into someone else's hands.
Is that any way to watch over your money? Would you take your car into the shop and tell the mechanic to repair it no matter the cost? Would you buy furniture and leave your credit card to allow the store to charge you whatever it wanted?
While you can't control the political environment or ever-moving global financial forces, there are certain things you can control. Smart investors should constantly be looking at all the costs of investing, just to make sure they are under control.
That means understanding what you're giving up to get your fair share.
It's always good advice to have an investment analysis done, and it should be done by a fiduciary, one who is legally required to watch out for you and your money and take a seasoned look at the overall picture. A fiduciary will look at your lifestyle, and devise a strategy based on your goals and objectives. They must divulge all the internal costs of funds and work to eliminate what can be eliminated.
The actions you take now can make a big difference in how you live your retirement years down the road.
Reid Abedeen is a partner at Safeguard Investment Advisory Group LLC. As an investment adviser, he has helped retirees for more than 18 years with issues such as insurance, long-term care planning, financial services, asset protection and many other areas. He also holds California Life-Only and Accident and Health licenses (#0C78700).
Keith Morelli contributed to this article.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Reid Abedeen is the managing partner at Safeguard Investment Advisory Group, LLC. As an investment adviser, he has been helping retirees with insurance, long-term care planning, financial services, asset protection and other issues for more than 20 years. Abedeen has a degree in business administration. He holds California Life-Only and Accident and Health licenses and a Series 65 license, and he is registered through the Financial Industry Regulatory Authority.
-
These Stocks Dipped in 2025. Do They Have Value?
If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)
A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.