Disclosure is not the same thing as clarity...
There are several different fee models utilized by different providers. While generically the fee structure of mutual fund products might be similar and insurance company
fee structures might be similar characteristics such as assets per participant, number of participants, etc. will impact the fees charged to your plan.
We will examine the details of the fees you are paying to uncover the true cost to participants and evaluate how efficiently the money you are paying is being utilized.
Fees are inevitable. It is the value you receive in return and whether the fees are reasonable that is important.
| What we will look at... |
What we will need to perform this task... |
Investment related fees: management, 12-b1 - all fees included in the stated expense ratio of the investment
|
Recent fund performance report with all disclosures |
| Asset based fees and contract fees |
Mostly applicable to insurance company products - we need a copy or summary of contract |
| Trust and custodial fees |
These fees are often absorbed by either the avdisor or the plan's administrator. If not it is likely they are either billed directly (need copy of the bill) or are a line item on your admistration bill. |
| Deferrred sales charges and surrender fees |
We need to know share class (mutual funds) or this would be in your contract with an insurance company |
| Advisory fees |
If applicable, these fees may be paid through the fund expenses or might be a separate fee charged by an advisor - if you have one. We need a copy of any bills. |
| Administration fees |
We need a recent administration bill and a copy of your agreement with your administrator |