There’s pain that goes along the pleasure of buying or leasing a vehicle-deciphering various fees. You have destination fees, dealer prep, documentation fees and taxes before you even get to the options. This exercise, which most people put up with every so often, is at least a one-time event.
That’s not always the case with fees investors incur, which can repeat through the life of an investment-and an investment advisor relationship. I was reminded of this when as I looked through my electronic library and came across a Bloomberg article published last summer that you can find here.
The financial industry’s laundry list
The list of fees investors pay is endless. You have funds for actively and passively managed mutual funds and ETFs, which range from more than 1% to a little over one-tenth of 1%. There are fees for retirement plan administrations, fees-big fees-for cashing in annuities early-and fees paid to your financial advisor.
There are hedge fund fees, which not only exact a percentage of your cost, but also of your profits. Hedge funds probably rank near the top when it comes to fees, although most hedge fund managers argue their performance merits their fees. That’s up for debate.
But did you know mutual funds with sales loads sold by brokers can cost you up to 5%. However, no-load funds and fee-only advisors-as opposed to load funds and commissioned brokers-are becoming the norm. That’s not up for debate.
The more you know about all the fees and charges connected with your investments, the better you and your investments will be. Not sure how to find out? At WealthGuard, we can help.