DR Podcast 310: Listener Q&A

Podcast 310 is in the bag… the mailbag! We’re discussing four questions from readers focusing on investing for retirement.

First, is 40 basis points a high fee for 401k funds and is it worth the expense? Rob breaks down the math and tells us why investing fees are like kryptonite and what are some other options for finding low cost funds.

Next, what is the recommended percentage of salary a person should allocate towards retirement vs. taxable accounts? Is there a perfect number? Also, say you plan to spend a big chunk of money in about 10 to 15 years – is a taxable account the best place to store that money?

Another reader seeks advice on long-term investments. Should she go with Vanguard or a company called Equitrust? Vanguard is the clear winner and Rob tells us why there’s no comparison.

Finally, have you heard of the zero fee FZROX Fidelity fund? It’s a Total Market Index Fund and it’s free! Is this too good to be true?

While we’re on the subject of investing and retirement, be sure to watch for Rob’s book set to hit bookshelves sometime in late summer or early fall! Titled Retire Before Mom and Dad, it’s sure to make a great gift for high school and college grads, young adults and even moms and dads!

Topics: InvestingPodcast

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