Servicing fee
Pays for:
Ongoing commission to the adviser who sold the product to you. They may continue to get this commission even if you have nothing further to do with them. The contribution is usually a regular deduction from your investment - you may not see the deduction but it will probably reduce your return.
Also known as:
Trailing commission, contribution fee.
Cost:
From nil to 1.5% of new contributions.
Tips:
- Make sure the contribution fee is as low as possible unless you get regular help from the adviser and consider it fair payment for their ongoing service. To work this out, convert the percentage figure to a dollar amount and ask your adviser about how much time they would spend on your case.
The money paid to a broker, financial adviser or planner, who sell products on behalf of a company. Commission can be based on the number and/or the value of the investments they sell.
A person who sells financial advice and/or products. They include financial advisers, insurance agents, planners, sharebrokers, mortgage brokers and bank managers or agents. They may be salaried, paid a commission or have an hourly rate.
A way to use your money to make it grow.
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