Fees paid by clients
Most mutual funds have a management expense ratio (MER) which is mainly comprised of the management fee. This fee (MER) is usually around 2% per year. It reduces your annual return. Otherwise, generally, fees can be avoided. You will only pay a fee if you make an early withdrawal from a deferred load mutual fund. This is generally 6% of your withdrawal declining to 0% after six or seven years and less for low load. You can also pay a front end load fee of around 5% but I generally avoid front end load funds.How does Dan get paid?
1. Commissions – I get paid commissions and service fees from the mutual fund companies. There is virtually no difference for what I get paid no matter which fund company you pick or how risky the fund is. One exception to this is I do not get up front commissions for no load funds. You can find this information in the fund facts which I will provide to you. I do not receive any bonuses or gifts for picking certain mutual funds. Therefore, I can do what I feel is right for my clients.
2. Referrals – If you feel I am doing a good job for you, please pass that along to anyone in need of a financial consultant.
Questions? (Remember, there are no silly questions). Contact Dan.