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This is an excerpt from an interview Jonathan gave for a Business Insider article.

How do I even know what Investment Fees I’m paying?

Many investors believe they’re only paying the expense ratio (used to pay marketing costs, distribution costs and management fees) when owning a managed investment, but there are several other investment fees involved: transaction costs, tax costs, cash drag, soft dollar cost, and advisory fees.

“The focus is on the ‘expense ratio’ because of its accessibility,” explains Jonathan DeYoe, investment adviser and president of DeYoe Wealth Management. “Anyone can look on Yahoo and get that number.”

The other fees are not so accessible.

“It takes effort to find trading costs and tax costs,” explains DeYoe. “There is no doubt these are real costs — often more substantial than the expense ratios that are more easy to discover — but investment companies certainly don’t make it easy to discover, and one really has to subscribe to third party research to find these costs.

Just because it’s easier to track down the expense ratio doesn’t mean it’s the only fee that matters — all fees that drag on your total return are important, DeYoe emphasises: “It isn’t so much the name of the fee that makes it important as it is the size of the fee. This is different from saying they are not worth it — this is only to say that every cost you incur reduces your overall return, so you probably ought to have a good reason to incur it, especially if there are alternatives that can reduce those expenses.”


Full article, “How to find out if your paying excessive fees on your retirement savings,” can be read at Business Insider.