money down the drain

There are numerous hidden fees that you should be looking for in employer retirement accounts like 401(k).

This piece by John Wasik tells you about some of the biggies — surrender fees, back-end loads, front-end loads, and 12b-1 fees, which are marketing and distribution fees that you should not be paying. Paying 12b-1 fees for an investment fund is like paying Budweiser a separate advertising/marketing fee each time you purchase a six-pack. Who would stand for that?  https://www.forbes.com/sites/johnwasik/2017/07/17/4-ways-to-cut-fat-401k-retirement-fees/#76423f152135

There are other hidden fees and commissions. Your brokerage statement may report a sales commission for the purchase of an investment fund. That may not be all you are paying. Look closely at confirmation statements and account statements for more. You may find a note in small print disclosing a per share or per unit commission or fee of some type. Or you may see that the amount your broker invested for you is significantly less than the amount you sent to your broker to invest. That may be because your broker deducted the commission that is where it was buried — I mean “disclosed” —  without reporting it anywhere on your confirmations and account statements.

Clients have been shocked to learn they paid commissions of hundreds or even thousands of dollars when all their confirmation and account statements reported was a $5 or $10 commission.

Thank you John Wasik for covering this important issue.

https://www.forbes.com/sites/johnwasik/2017/07/17/4-ways-to-cut-fat-401k-retirement-fees/#1fc186692135

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Lisa Bragança recovers losses for investors all over the country, protects whistleblowers, and defends individuals and businesses in government investigations. As a Branch Chief with the SEC Division of Enforcement, Lisa investigated a wide range of investment fraud and Wall Street misconduct.

You can reach Lisa at (847) 906-3460 or BragançaLaw@gmail.com. You can follow Lisa on Twitter @LisaBragança.

Disclaimer: This information is for general purposes only and should not be interpreted to indicate a certain result will occur in your specific legal situation. The information on this website is not legal advice and does not create an attorney-client relationship.