Mitch Tuchman, Managing Director of Rebalance IRA, recently joined CBS Senior Business Analyst Jill Schlesinger on her nationally syndicated radio program “Jill on Money” to discuss why the retirement investing game is rigged against the average investor, and how Rebalance IRA helps bridge the gap by providing the kind of service and advice seldom seen except by the super-wealthy. Below is a brief excerpt of the conversation.
Jill Schlesinger: You come from the hedge fund world, this very sophisticated world. Were you surprised that the retail investor was getting the short end of the stick?
Mitch Tuchman: It’s shocking…it’s shocking…When you’re a person who works really hard – firemen, school teachers, small business owners, and you save up a few hundred thousand dollars, you’re in your 50s, you’re trying to retire, [your money] is sitting in an IRA or 401k. The financial industry will find a way to siphon over 2 percent a year out of your account. And that’s in a variety of sundry ways. And if you look at the overall returns of stock markets over decades, and a mixture of some stocks and bonds, people should be getting around 8 (percent). So if you’re getting over 2 (percent) taken out, that’s over a quarter of your returns going to the person giving you advice, and frankly over time that can eat up a third or half of your money. And that’s unconscionable. That’s damaging. And what’s not damaging is helping people keep all of the 8 percent by giving them a smart allocation for their money and keeping fees low. ”