The fees are not good always, sometimes it worth the cost and on the other hand, some fees are completely wastage of money. In such a case, it becomes unpleasant and sneaky. It is especially true for the financial industry, which comes up with full of fees that come in different shapes and sizes.
Most of the fees are well known, but some hidden charges feel the customer that they caught in a room without any door or window and for the close oom they are paying thousands of dollars unknowingly.
You Should Never Pay These Financial Fees
So here is a list of financial fees prepared by SB Accounting experts that you should never pay. Read it, and next time when you come across this type of charges, refuse to pay it.
Mutual Fund Loads
Load funds are a mutual fund. For example, shares of ‘A’ class mutual funds that charge an advanced commission. You might have to pay some percentage of your investment in advance say 3.75% to buy the funds. But with it, they also charge some fees in the name of expense ratio or management fees. So when you sum up together, it is a hefty amount of money you have to pay for buying some mutual funds.
Even on buying or selling mutual funds, you have to pay load fees which again a burden on your returns. It does not make any sense as many funds and brokers do not charge the load fees. However it is not a horrible option, but we recommend you to compare the changes from different brokers and financial adviser.
A 12b-1 fee is nothing but distribution or a marketing fee that apply each year. And it is considered as an operational expense, so it included the fund expense ratio. So look at the statement, if you can see 12b-1 fees charges then refuse it. See the mutual funds has to be marketed, and it has to testify the possibility so it 12b-1 is not right in the first place.
Variable Annuity Fees
Some of the advisers sold a variable annuity and mutual funds. And for variable annuity, they charged about $50. And the thing for what we concerned is variable annuity fees, which is about $3,500 that is charged unknowingly. And it’s too high!
Late fees are another type of fees that you do not need to pay. It includes the fees for late paying your bills. To not pay late fees, the formula is straightforward, save extra in advance, and you have enough amount to pay all bills even for unexpected one. Yes, you don’t need to pay for the mailbox, inboxes, and email that you receive for your bills on a regular basis. Track the online method for payment and a good reminder system that helps you to pay the bills on time.
It is the most annoying fees. How it feels that you have made any transaction and in return, you have to pay the charge. Some merchants give it name “convenience.” It is taken when you pay over the phone or some apps. Avoid such transactions as it does not make any sense.