Many investments promise enticing perks and large returns. They’re usually too good to be true and inundate you with fees. Avoid a headache by reading the fine print.
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00:57 – Rate Increases On Long-term Care Insurance.
- It’s not that uncommon for insurance rates to go up. However, long-term care is a unique type of insurance in that when its rates rise, they rise a lot. It’s also unique in that a lot of people purchase long-term care as a personal choice. It’s hard for actuaries to have tables about peoples’ behavioral choices, so they raise rates to compensate for the unknown. Remember, you can modify your long-term care policy. This can help to alleviate your rising premiums.
3:32- Watch Out For The Fees In Annuities.
- If you purchase an annuity, make sure you know what you’re getting into. Variable annuities especially come with high fees, and often advisors fail to mention them as they’re pitching you the product. The fees can also be complex and difficult to understand. Work with a fiduciary advisor who will work in your best interest. They’ll also explain the ins and outs of different investments as you’re considering where to put your money.
5:54 – My Mutual Fund Tanked As Soon As I Invested.
- How often have we heard about the hottest mutual fund out there, only to have it tank as soon as we get in? Popular mutual funds are touted in all sorts of articles and magazines. However, as they attract more money, they become harder to manage. You have to put that money coming in somewhere, and certain stocks have limits on how much you’re allowed to own. Therefore, the money has to go in lesser stocks, and the fund loses value as a result. Sometimes, the larger the fund gets, the worse it will perform.