Best Practices for Fee Transparency

Wall Street's hidden fees are crippling your investment returns ...and you'll never see them on a statement. 👉 I'm talking about the "expense ratio" of your funds. Loading clients up with high-fee funds is a sneaky way some companies extract more money. This is a common practice at the "big box" firms. If your advisor at XYZ Investments has you in a portfolio full of XYZ funds... Your Spidey sense should start tingling! 🧠 "Are they really working in my best interest?" ------------- ➡️ Here's how to audit your portfolio fees: Google the 5 letter ticker symbol for each fund and see what comes up for expense ratio. For example - this fund has an expense ratio of 1.3% which is SKY HIGH. - If the fund gains 10% in a year, you get 8.7%. - If the fund loses 10% in a year, you lose 11.3%. 💡 Best practice is to keep expense ratios below 0.3%. This fund is over 4x that expensive! That earns it a 💩💩💩💩 rating. ------------ BUT WAIT - THERE'S MORE! This fund steps up to a 💩💩💩💩💩 rating because it also comes with a 5.25% front load. What's that mean? If you put in $100, only $94.75 actually gets invested. You lose 5% right off the bat as a sales charge. And then the ongoing expense ratio kicks in. Crazy, right? As John Bogle said, "Fund performance comes and goes. Costs go on forever." Cost is one aspect of investing you can control. How much are you losing to hidden fees every year? 🤔 Let me know if you need help figuring it out. 📨 ------------ I'm Allen Mueller, a financial advisor who helps Aerospace & Defense professionals build wealth, win the tax game, and make work optional. + Follow and hit that 🔔 for more personal finance content! + DM me 📨 or visit my website to book a complimentary meeting. ------------ **This post is general education, not financial advice.**

🚨 In December 2024, the FTC filed a lawsuit against Dave and its CEO, claiming deceptive marketing practices. The allegations? Advertising "cash advances of up to $500" that most customers didn’t qualify for—and failing to clearly disclose fees. We encountered this a lot at Brex. There's a common saying in tech: If a product is free, you're the customer. In fintech, "free" has long been code for "fee." But regulators are making it clear—this approach won't fly anymore. Here's how you can stay on the good side of the regulators: 🔍 Transparent Advertising – Be real with your customers. Make sure your marketing materials match the actual experience. No hype, just facts. 💰 Clear Disclosure of Fees – If there are fees (especially recurring ones), say so—loud and clear. Hidden fees = consumer distrust + regulatory risk. ✅ Explicit Consent – Before charging a fee, secure clear, informed consent - I love a good checkbox. Provide easy ways for customers to manage or cancel these charges. 📋 Compliance Audits – Regularly audit your marketing, even your in-app and transactional emails. (P.S. Warrant does this automatically). Prioritizing transparency and trust doesn’t just keep you out of regulatory trouble—it’s also key to building long-term customers. What strategies are you using to stay compliant? Drop your thoughts in the comments! 💬 #Fintech #Compliance #Transparency #Marketing #FTC