Written by: Tyler Carter, Director of Business Development, NuView IRC, Inc.
There’s a lot to enjoy about summertime, especially if you’re here with us in Florida. We have sunshine, beautiful beaches, and crystal clear spring-fed lakes. School is out and families are vacationing. No I’m not with the tourism board, I’m in the IRA business. The self-directed IRA business is somewhat cyclical and it seems that with all of the attractive nuisances that abound this time of year, saving for retirement takes a backseat. At the end of a day spent outside in Florida during the summertime, sitting indoors in the air conditioning is absolutely heavenly…unless, you happen to be opening mail and reading bills.
Several weeks ago, I opened a bill from the utility company to see that I owed about $350 for water, utilities, etc. It seemed like an absurdly high bill considering the size of my house and my anal-retentiveness about turning off lights and programming the A/C to run efficiently. I have my parents to credit for this behavior and I can still recall them chastising us for “letting the bought air out.” After reviewing this particular utility bill, I asked a close friend with a similar sized house what he was paying. He told me that my bill was definitely higher than his and that he would email me a copy of his bill for comparison. I noticed that his bill was more than $100 cheaper than mine despite the fact that visiting his house carries a serious risk of frostbite. What he didn’t notice, however, was that his water meter showed the same number at the beginning and the end of the month. Somehow, the utility company had seemingly neglected to notice that he has a broken water meter.
As it turns out, I had a leaking irrigation system that was the major contributor to my bill. Conversely, my friend was receiving a great deal because he wasn’t being charged for water. In each case, neither of us understood the driving forces behind our bills. How many of you pay your bills automatically without reviewing them carefully? What I’m trying to convey is that summer is an excellent time to figure out who you’re paying and what you’re receiving for your hard-earned money. If your potential savings is being squandered, your investment choices may be limited.
I recently met with a prospective client who initially balked at our $295 annual asset fee. He assured me that he wasn’t paying anything at his current financial institution. Upon further inspection, we realized that he was dollar-cost averaging into a mutual fund that had a 4.75% front-end sales load. If his prior IRA administrator had been transparent in disclosing the fee for this particular investment, he would’ve balked at the thought of entering into a new investment while almost 5% underwater. There’s a common theme that exists anytime you’re paying for something- you’re going to hear all about the benefits of what you’re buying and very little about the cost. After reviewing this gentleman’s old account statement, he recognized NuView for our value and transparency.
Our clients come to us because they’re interested in putting forth effort to attain peace of mind by becoming financially secure. Sure, investing is important but before you can invest, you have to accumulate savings. I’ll bet that everyone reading this has the equivalent of one leaky sprinkler head or an expense mutual fund that’s causing them to have less investible cash on hand. I encourage everyone to do something about it! Summer is a time for fun and relaxing but I assure you, nothing is more satisfying than knowing that while you’re enjoying the beautiful weather, nobody else is enjoying your potential savings.
