How much did you pay in investment costs and fees last year? If you’re like most investors, you don’t even have a ballpark idea. And those costs can add up — or, more to the point, subtract from your long-term investment goals.
This is a perfect time to uncover the hidden costs you paid for your investments. That might take some digging. But if you know what questions to ask and where to look, your investment providers are required to disclose them in writing.
Here are some common fees you might not notice:
IRA fees. If you have an individual retirement account, the custodian will likely charge an annual fee, deducted from your asset value once a year, typically between $25 and $50. But some online brokerage firms waive annual fees.
If you have an individual retirement account, the custodian will likely charge an annual fee, deducted from your asset value once a year, typically between $25 and $50. But some online brokerage firms waive annual fees. 401(k) fees. If you have a 401(k) plan at work, the employer may cover some fees. But in many companies an individual participant’s account also pays an annual charge. According to Investopedia, the average annual account fee ranges from 0.5% to 2%. If the percentage is higher, the employer has a fiduciary responsibility to find a lower-cost provider.
If you have a 401(k) plan at work, the employer may cover some fees. But in many companies an individual participant’s account also pays an annual charge. According to Investoped
