With your retirement comes costs: medical care, rent or mortgage payments, and daily needs. Because you won’t have much—if any—money coming in, you need to keep yourself protected from hidden retirement fees. Here’s how to recognize this monetary surprise attacks and what they’re called.

  • Management fees. Brokers may charge you weekly, monthly, or yearly just to maintain your account. You may also find yourself as the recipient of start-up or introductory fees upon the creation of your account. This may add to your first bill, so make sure that you have enough available for surplus charges.
  • Retirement home fees. Retirement home deposits and administrative fees at your new abode can cost you—especially if you don’t plan for them. Before you choose your retirement home, make sure to ask about all fees and deposits that you’ll encounter. Then, you can properly prepare for when the time comes.
  • Salesperson fees. Unfortunately, some brokers add in hidden fees as they offer their services. Be wary of something called the “sales load,” as that is one such concealed cost. Even though brokers are supposed to earn you money, their commissions can cost you in the long run.
  • Mutual transaction fees. Many people rely on brokers to help them acquire and sell mutual bonds. In fact, they may recognize this term as something used to describe a charge incurred as a broker acquires or sells off said bonds. If you’re going to work with a broker, ask about mutual transaction fees up front so that you know about the broker’s policy—and so that you can compare it to that of their competitors’.
  • Relocation fees. Moving fees, change of address or new licenses if you live in a different state, and labor costs may increase the amount you intended to pay upon relocating to where you’ll live your golden years. When you’re budgeting for your retirement and your move, make sure you do thorough research and develop an extra financial cushion in case some of these costs take you by surprise.

If you keep an eye out for hidden retirement fees, make sure to discuss them with the person or organization imposing them. You may be paying for a legitimate reason, or you could be dealing with an employee taking financial advantage of you. A good solution? Ask what the fee is for—with details—and why it’s necessary. This will help you decide if the cost in extraneous—and it may put you in position to bargain with someone who still wants to keep your sale. Remember to stay calm, focused, and level-headed.

As you’re saving for your retirement, don’t let hidden retirement fees put a damper in your plans. This is your future, so take an active role in it—and don’t let anyone take advantage of your years of work.

Want to grow your hard-earned savings while staying 100 percent protected from stock market declines? Give our trustworthy advisors at Ty J. Young Inc. a call at 877-912-1919. You can also follow our helpful blog here.

 

 

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