Investment Management Fee

Investment management fees are paid to financial professionals for the management of a financial product such as a mutual fund or for the oversight of an investment portfolio. An investment management fee can cover transaction costs, professional advice, investor relations and general administrative costs. Investment management fees can also be represented as a portfolio percentage, particularly when paid to financial advisors for the management of individual portfolios or accounts. For example, the investment fee for a low cost mutual fund such as Vanguard’s index funds may be as low as 20 basis points or 20% of 1%. So, if a person has $10,000 invested in this fund her annual fee paid to Vanguard would $20 (.002 X $10,000). In contrast to the index fund, some actively managed mutual funds and hedge funds may have investment management fees that exceed 2%. Investors must remain acutely aware of investment management fees because higher costs can have a profound impact on investment returns over time.

Annuity Fees and Expenses

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Annuity Digest Buying Guide: Annuity Fees and Expenses

Expenses should be a top priority for any financial services consumer.  Many people have been conditioned to be aware of expenses when it comes to investment products.  Indexed-bases investment management companies such as


MetLife Introduces Low Cost Variable Annuity

MetLife recently announced the launch of a simple, low cost variable annuity called Simple Solutions. The Simple Solutions variable annuity will be sold through banks and is intended to address retirees and near-retirees in the range of 60-80 years of age. Features and highlights include: A guaranteed lifetime withdrawal benefit of up to 6% of the initial investment if withdrawals begin after age 76, 5% between 65 and 75, and 4% if before age 65. Automatic annual increases of the GLWB if the...
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High expenses or fees are one criticism I have heard regarding annuities. Can you explain the fee structure around annuities?

Annuities are products that combine insurance and, in the case of variable annuities,


What types of fees should an annuity investor expect to pay?

It depends upon whether it is a