Fees & Charges

Investing comes with a lot of fine print, much of it related to how much everything will cost you. From paying fees and commissions for professional advice, to the costs associated with specific products, you need to know what you are being charged to invest your money.

Financial professionals may be compensated in a number of ways, like hourly fees, flat fees, commissions, salaries, and/or a percentage of the value of the assets they manage. Know Your Financial Professional is a great resource to learn more about how financial professional make money.

Specific products may come with their own set of fees, such as handling fees, transaction fees, purchase fees, and more. These fees might be “baked into” the product’s expense ratio, meaning you don’t pay the charges directly, but the fees ultimately reduce your returns.

There’s no right or wrong fee structure. What’s important is that you are fully aware of the costs involved and that you reduce those costs when possible to maximize your returns. The BC Securities Commission created a helpful fee calculator to help you make the most of your money.

Portfolio Management

The value of your portfolio will change over time. That’s because your investments may gain or lose value at any moment. But checking them every second of every day isn’t necessary. Create a schedule to check your portfolio’s performance, and make sure you read your financial statements for any signs of trouble.

The financial statements you receive provide you with plenty of information, and typically include the following:

• A statement of financial position
• A statement of profit or loss and other comprehensive income
• A statement of changes in equity
• A statement of cash flows
• Notes, comprised of significant accounting policies and other explanatory information

FINRA created a thorough guide for reading financial statements.

If you work with a financial professional, they should provide you with an annual report, and it’s common for these professionals to ask to meet once a year to discuss adjustments to your portfolio.

Helpful Resources

Glossary of Terms
Investing Basics
Investor Resources
Types of Investments