Broker Check
Beware of Hidden Fees and Expenses

Beware of Hidden Fees and Expenses

| April 21, 2020

Do you know what you are paying for?

The question may actually not be as easy to answer as it sounds… While you’d assume fees would be relatively minimal, some products can carry hefty costs, and they aren’t always clearly illuminated. What should you be looking for? 

Many advisors will charge a client a percentage of the assets under management. Additionally, financial advisor fees vary with the services they provide. Generally speaking, how much your financial advisor charges should be well-laid out and understood at the beginning of the client-advisor relationship.


Does your retirement statement disclose $0 for fees and expenses? Ask your advisor about these potentially ‘hidden’ fees:

  • Annuity Mortality & Expense Fees are deducted daily by reducing the number of units credited to client’s account value.

  • Mutual Fund Sub Account Expenses are expenses internally deducted from NAV and vary depending on the mutual fund(s) a client’s invested in.

  • Annuity Surrender Fee applies if a client leaves during a certain period of time, certain percentage of account must be paid to transfer.


Saving for your future is one of the most important financial decisions of your life. Make sure you know exactly what you are paying for, that your advisor is acting in your best interest, and that hidden fees don’t cost you a small fortune.

It can be difficult to understand all the fees and expenses involved in working with a financial advisor. Honest and experienced financial advisors should be transparent about their fees. In fact, the level of disclosure you receive without asking should be a factor in your decision whether or not to work with a particular advisor.


Ask questions and do your research!

  • Ask the advisor how much they will make in compensation from all sources by working with you. This includes sales charges and commissions on any products they might recommend. It also includes fees embedded in the products they are recommending.

  • Review any disclosure documents you are given. These are written in legal-type language and can be a bit dry. None the less, they are important and you should read them. There will typically be a section on fees and expenses.

  • If you don’t understand what you’re reading, ask questions. Your financial advisors should put your interests first in providing advice and should be able to answer your questions.


We can help you gain financial clarity. CONTACT US to review your financial plan and to get a second opinion on what you're invested in.



Carefully consider the investment objectives, charges, expenses, share classes, and risks of the investment before you invest or send money. Investing involves risks including possible loss of principal.