Trailer Fees
What are trailer fees and why should you care?
What are trailer fees and why should you care?
A trailer fee is the annual service commission paid by the mutual fund company to the mutual fund salesperson (the salesperson who would like you to think of them as a financial expert). This fee is paid as long as the victim, I mean client, holds the mutual fund. These fees generally range between 0.25% and 1% and are paid out of the fund’s management expenses.
This is one example of how costs are “baked in” to the product. Bottom line? Just because you don’t get a bill, doesn’t mean you are paying big bucks when using the services of a “helper.” Avoid them and their expensive products. Learn more by reading Financial Happine$$ and What Color is the Sky. More wealth for YOU to follow!