May 9, 2016
Dear SEC Dodd-Frank Investor Advisory Committee,
Because it is so difficult to fathom any valid reason for not informing investors of their investment services costs, it is only fair and logical that we should be made aware of them in order to make better decisions about investment options.
Therefore please make necessary changes so we can know what our investment costs are.
Not knowing not only breeds suspicion and mistrust but may inadvertently induce people to make bad decisions in selecting investment opportunities.
Recently, I spoke to a financial advisor who told me that a certain mutual fund had an expense ratio of 0.62 that would be taken from my investment every day. She said that cost would never be reflected in any of my statements. I was surprised by her being so candid and confirmed what she said with my financial advisor at my bank who had never told me this before.
All this makes me suspicious and confused. I wonder if people who could be investing in their financial futures are not going to end up being a welfare burden on the state because their suspicions and confusion will hinder and restrain them from taking steps to plan and ultimately ensure their own financial security in their retirement years.
Please do support transparency in investing and require full disclosure in our financial statements and in proposed investment options.
Sincerely,
Ernest Govea