Expense ratios, what exactly are they? It’s again one of those financial jargon terms that maybe you’ve seen perhaps on a 401K statement or on a investment statement and you’re wondering what exactly is that? Well again, they’re going to be talking specifically about what is that expense within the mutual fund that you might be invested in. So there’s different general and administrative costs within a mutual fund, different research costs and so they have an objective of that fund. So there’s going to be costs associated with that investment. Unfortunately nothing is free. So there’s also going to be different advertising costs within a mutual fund. They’re always going to be trying to seek new investors so they’re marketing that particular mutual fund with the hopes that you’re going to invest and therefore cover those costs. So it’s generally published within a prospectus. So you may have come across those in the past where it’s usually a pretty thick booklet or now a lot of them will generate that report online for you. And within all those pages and pages, there’s usually a small line item that will talk to you about what the expense ratios are. It will also within the prospectus talk to you about okay, what is the objective of this fund? What are the different holdings within the fund? What specifically is the strategy or purpose of this investment and of course then, what is the expense ratio? So fees can vary widely and you also have to be careful that there’s a number of different hidden costs. So those hidden costs could include different transaction costs, maybe buying and selling of the securities that are behind the scenes. Now that’s where another financial jargon term comes up of turnover ratio. So what they’re referring to there is how often are they turning over the different holdings behind the scenes within that mutual fund. So if you’re going to have a higher turnover ratio that means that they’re buying and selling more regularly and typically there would be a higher cost, hidden cost within that mutual fund. So it’s something here at Centennial Wealth Advisory we have the ability to dive behind the scenes and look at different funds and determine sort of what are those expense ratios. Sometimes better determine sort of what are some of those different hidden costs or turnover ratios to better understand what those costs are. And that’s something we feel is very important as transparency when it comes to your investments. You want to know specifically what you’re holding, what those different costs are and ultimately then that way you have the right to make that decision of what best fits your overall retirement plan. So again, we encourage you to give us a call. We’d love the opportunity to sit down and talk with you in greater detail.