May 6, 2016
Hello,
My name is Adam Bird. I am a middle class person who invests what I can afford. After reading the: Recommendation of the Investor Advisory Committee Regarding Mutual Fund Cost Disclosure, I firmly believe that most blue collar / lower - middle income / non college graduates like myself do not understand the impact on fees with any investment with a financial institution.
Reasons I believe dollar costs should be explained on the account statement:
1. Many only look at the annual / monthly statements to track their money. Many I know have not read a prospectus. (Let alone what one is even though they invest.)
2. Some I know do not know how much they are spending on costs of their mutual fund / 401k. Many don't have a mutual fund. A peer did not know about the 401k penalty if they withdraw before a certain age. (Basically many do not know, so making it clearer would be beneficial.)
3. I believe the dollar amounts will keep more companies honest. I do not think they try to trick people, but they benefit when others do not fully understand the costs.
4. I have a family member who will not invest in any stock or mutual fund because they do not understand it.
I am giving feedback, to help others who do not have time or have the knowledge to understand the costs associated with a mutual fund or any investment. I would like to see more voluntary dollar costs put in the account statements, and review if it should be mandated.