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Every year economic experts gather for an annual pow-wow in the beautiful state of Maine. Experts are currently in agreement that Americans approaching the crest of retirement are in a bit of a pickle. CDs and treasury notes are thin yielders at best lately. The staple of many soon to be retirees, the 401{k,} has been less than trustworthy of late, due to the convolutions of the stock market. Yet, the main thrust of this year’s talk in Maine was fees. With the meat and potato parts of savings only now pulling out of the woods of an economic downturn, experts are looking at the side-dish of fees. Even a .5 difference in fees can compound over the years that the saver saves, making a vast difference to the amount that the retiree will have to live on during their post-retirement years. With this truth in mind, experts suggest that index funds are a better bet than managed funds.

Key Takeaways:

  • 401K owners have been the recipient of market gyrations over the last fiscal year.
  • The market is recouping after a rusty place, but analysts are not feeling particularly bullish.
  • Treasury notes and CDs are not returning very well for investors lately either.

“In other words, paying too much in fees is the difference between retiring with half a million or $1 million.”

Read more: https://www.npr.org/2012/09/01/160011570/saving-for-retirement-heres-a-tip

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