My wife and I are retired and have noticed that the annual investment fees we pay really add up. We’re thinking of moving our retirement savings to reduce our expenses. Do you think this is a good idea? — Tom M.
It’s a great idea. In fact, I think all retirees living off their investments (not to mention people still building a nest egg) should at least take a hard look at how much they’re paying in investment costs, including any fees to advisers, to see whether they can do better. The reason: cutting expenses is one of the easiest ways to increase the amount of income you can draw from your nest egg without taking on extra risk.
To show you just how much you might be able to enhance your retirement prospects with this simple step, here’s a quick example I ran using the American Institute For Economic Research’s Retirement Withdrawal Calculator.
