|Readers Also Like Save Fuel: Safe Driving Tip for the Road to Retirement|
|Hog the Road: Safe Driving Tip for the Road to Retirement|
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. By Richard Schmitt NEW YORK ( TheStreet) -- Penny pinching gets a bad rap. Sometimes you may feel that salesmen get offended by customers who ask questions about a product's pricing. Sure they deserve to be paid a fair price. But then what is fair when it comes to the price you pay for gas, or for that matter of investing your retirement savings? Unlike the relatively simple price structure of gas, investment funds offered in retirement savings accounts are priced a little differently and less transparently. When you consider the cumulative effect of investment costs charged your retirement savings portfolio on your future standard of living in retirement, you need to make it your responsibility to find out what's a fair price for investing. To understand the costs skimmed off the top as a percentage of your holdings in your retirement savings account's alternative fund options, be sure to heed this Safe Driving Tip No. 3:
Inasmuch as cost represents just one criterion for selecting a fund worthy of your investment, you should also consider other factors such as the fund manager's background and experience, as well as the fund's investment philosophy, current holdings, track record, and outlook. Once you have saved for retirement, diversified your retirement savings portfolio, and selected cost-effective fund options, you are ready to better your retirement destiny through a form of hyperactive portfolio rebalancing. Watch for an upcoming Safe Driving Tip No. 4 describing how you can 401(k) day trade your retirement portfolio in only a few minutes a day to extract lasting returns out of a volatile market apparently headed nowhere. This article was written by Richard Schmitt, author of "401(k) Day Trading: The Art of Cashing in on a Shaky Market in Minutes a Day." Outside of his appearances on Fox Business News, KCBS, and Business News Talk Radio, he is an Adjunct Professor teaching retirement planning at the Edward S. Ageno School of Business at Golden Gate University.