Financial planners work with investors when picking out investment options. Many investments are governed by the Securities and Exchange act of 1934, as amended. The standard practise involves matching an investor to an appropriate investment.
A transactional fee is a charge a financial planner assesses for assisting in the sale or purchase of investments. The transaction fee can be a flat rate (fixed fee) such as 1.00 per transaction. This fee appears with every event in which the financial planner changes the investment on behalf of the investor. The transaction fee may be a percentage (varied) of the value of the transaction. This could be one percent of the money used in the transaction. Ask the financial planner to explain the investment cost of a transactional fee.
Understanding transactional fees can be an important piece of properly utilizing the knowledge a financial planner brings to your investments. Approaching or during retirement seniors need to be able to account for every penny taken from their hard earned savings.
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