Fresno Financial Consultant News: Investors Benefit From “Fee Wars”

From two-for-one buys to free shipping, consumers love saving money. The same is true for investors. Over the past 20 years, investors have become savvy at monitoring not only how much their portfolio earns, but how much they pay in management and other fees.

This attention to cost has driven expenses down in the last two decades, especially among mutual fund companies. With rising competition from low-cost exchange-traded funds (ETFs), mutual fund expenses dropped from an average 0.87% in 1999 to 0.45% in 2019. That represents about $5.8 billion in earnings on money that remained in investor accounts.1

Wall Street appears to be learning lessons from large volume discounters like Amazon and Walmart. In 2019, 20% of the least expensive funds attracted $581 billion in new money while the top 80% lost $224 billion. Much of that new money is flowing into index funds, which cut fees from 0.72% in 2015 to 0.61% last year.2

As investors seek funds with lower expenses, asset managers have responded by cutting fees further to remain competitive. The average fee among actively managed funds decreased by 10% between 2015 and 2019. And increasingly, more investors are opting to pay for advice in the form of fees instead of commissions.3

Fresno Financial Consultant Takeaways 

When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno retirement planning advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax-Efficient, Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

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1 Alex Soojung-Kim Pang. The Atlantic. April 30, 2020. “To Safely Reopen, Make the Workweek Shorter. Then Keep It Shorter.” https://www.theatlantic.com/ideas/archive/2020/04/safely-reopen-make-workweek-shorter/610906/. Accessed June 2, 2020.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc. are not affiliated companies. 719276 – 12/20