After ranting about fees for so long, I decided I should probably show you how to find those fees.
To start with, let me say, I’m sure you know better than most that the truth is often hidden deep in the fine print.
So I’ll point you in the direction to dig in:
The Initial: Account Agreements
When you first sign up for an account, you’re provided with an account agreement. This document is a treasure trove of information, including the myriad of fees you might encounter. Make it a practice to review this agreement closely to understand the fees associated with your account.
Before Signing: Disclosure Documents
Before making any investment or purchasing an annuity, you’re typically required to sign a disclosure document. This document is good for its detailed listing of fees, sometimes revealing costs that might have been overlooked. Reading these documents thoroughly before signing can save you from unexpected expenses.
The Transaction Trail: Trade Confirmations
Each trade made by you or on your behalf generates a trade confirmation. These confirmations are often accessible online, requiring a login to view, but they hold key information about trading fees incurred during the purchase of investments. Regularly reviewing these confirmations can help you find the fees for each transaction.
The Regular Check-Up: Account Statements
Your account statements are not just a summary of transactions but also a detailed report of fees, if you know where to look. Often nestled within sections on transactions or fees, you can find specifics about any financial advisor fees or assets under management (AUM) fees you’re paying. Regular reviews of these statements can keep you informed.
The Investment Firm’s Website: The Direct Source
For detailed information on management fees associated with mutual funds or ETFs, visiting the investment’s website can be enlightening. These sites are required to disclose all fees, offering you a direct view into what you’re paying for the management of these funds.
But if you want my real suggestion I would say you should contact your advisor and simply ask them for a list of all the fees you’re paying.
You may get some humming and hawing but they’ll get it to you.
P.S. I dedicated an entire chapter of my book “Unbrainwashed Investing” to helping you find these fees. You can read that chapter by CLICKING HERE.
P.P.S. These hidden fees are because you have a fee-based advisor instead of a fee-only advisor. There is a major difference and I’ll tell you about it later
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