What are the hidden fees?.


The prices on this website do not include certain other fees. If your account holds
mutual funds or exchange traded funds (ETF’s)
, you need to read the prospectus for each fund to tell what the management and other fees are which are charged to the funds. For equity funds, these are typically .8 to 1.2% of the value; for bond funds, maybe .5-.8%. There are also different fund classes. The “A shares” usually carry a sales charge when you buy and a penalty fee if you sell before holding for a certain period. The “I Shares” are institutional shares, and usually do not carry these charges. If you manage your own money and buy
mutual funds
through, say, a
discount broker
, there is a good chance you bought the A shares. When you hire a firm to manage your money, they should be buying you the I shares. All the fees for a mutual fund are summed in the prospectus and are called the “expense ratio”, being the total fees and expenses, shown as a %, charged to the fund. If you want see what the expense ratio is for each fund, go to Finra (Financial Industry Regulatory Athority)  and enter the fund symbol or the CUSIP (committee on uniform securities industry pricing) number for each of your funds.

Your advisor may receive
fees from fund
companies and other providers.
Most advisors receive “kickback” fees from fund providers
. Some are called 12-B1 fees. The fee gets its name from a section in the Investment Company Act of 1940 and is an annual marketing or distribution fee on a
mutual fund
. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.25-1% (the maximum allowed) of a fund's net assets.

Providers of other investments such as
annuities
often pay high commissions to the broker or money manager. When you shop, read the fine print about these charges.