For most investors, credit customers and savers, fees are a nasty fact of life, so they ignore them, even though they consistently and silently eat away their savings. Fortunately, most of these noxious expenses can be avoided.
According to new research by NerdWallet, Americans vastly underestimate the amount of fees they’ll pay on investment and banking accounts. By their estimate, Americans could be paying more than $300,000 over their lifetime.
Surprisingly, though, those surveyed said they’d only pay roughly $2,000 in fees. What accounts for the huge gap? Most investors don’t check to see how much they are being charged for money management, late fees or finance charges. They don’t read the fine print.
And here’s the ironic part: If you aren’t paying those fees, you could invest the money and reap up to $1 million over your lifetime. That could form the core of a retirement account. Here are some more details from the survey:
There’s much you can do to avoid fees. Here are the simplest courses of action: