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5 Easy Ways to Squander Your Retirement Nest Egg in 2014

Don't fall prey to these retirement plan-killing plans

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Squander No. 5: Fry your nest egg on high fees

iStock_000007020402XSmall Businessman with Money_0Some of you prefer to use mutual funds in your portfolio, a perfectly good way to diversify and avoid the “all-Enron” approach to investing. However, paying unnecessary fees can eat away at your capital.

Load funds are one of the most deceptive ripoffs out there. A back-end load or (B share) means a fee is charged when you sell the fund; a front-end load (A-share) means the fee is charged up front. A fee is a fee is a fee. You can avoid them. You can buy a no-load, low-fee variety that tracks the same indices or asset class as the more expensive counterpart. Some of the best come from Vanguard, T. Rowe Price, Fidelity and Pimco. If your broker tells you otherwise, find another broker, or put your money in a discount brokerage such as E-Trade (ETFC) , TD Ameritrade (AMTD) or Schwab (SCHW).

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