WealthCare Professor
by on October 26, 2021  in Investing /
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As with anything you buy, there are fees and costs associated with investment products and services. These fees may seem small, but over time they can have a major impact on your investment portfolio. Understanding the fees you pay is important to investing wisely.

The following chart shows an investment portfolio with a 4% annual return over 20 years when the investment either has an ongoing fee of 0.25%, 0.50% or 1%.

Change of portfolio value over 20 years


The best advice we can give you about understanding fees and investing wisely is to ask questions. For example:

  • What are the total fees to purchase, maintain, and sell this investment?
  • Are there ways that I can reduce or avoid some of the fees I’ll pay, such as by purchasing the investment directly?
  • How much does this investment have to increase in value before I break even?
  • What are the ongoing fees to maintain my account?
  • For mutual funds: How much will the fund charge me when I buy and/or sell shares?
  • For the investment professional: How do you get paid? By commission? By the amount of assets you manage? By another method? Do I have any choice on how to pay you? Should I pay you by the transaction, or pay a flat fee regardless of how many transactions I have?

Investment Products

Investor Bulletin: Mutual Fund Fees and Expenses
Updated Investor Bulletin: How Fees and Expenses Affect Your Investment Portfolio
Investor Bulletin: Mutual Fund Classes
FINRA's Fund Analyzer (link is external)

Investment Services

Investor Bulletin: Brokers' Miscellaneous Fees
Investor Bulletin: Opening An Investment Advisory Account

Common Fee Types

Mutual Fund Fees and Expenses
12b-1 Fees
Distribution Fees
Sales Charge (Or Load)
Redemption Fee
Exchange Fee
Account Fee
Purchase Fee
Management Fee
Shareholder Service Fees
Total Annual Fund Operating Expense


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WealthCare Professor
WealthCare Professor is the WealthCare Connect virtual instructor that provides members with educational wealthcare content. All content is for general informational purposes only and does not constitute advice. Consult with a licensed wealthcare professional before making any wealthcare decisions.
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