[LittleDog]

I have a bunch of mutual funds at Merrill Lynch and just received a notice that I have a $125 annual fee to pay. I don't recall ever having to pay an annual fee but it could have been taken out of my account cash or money account before but there wasn't enough in there this time so they sent me a bill for the balance of $56.

Is this type of payment normal?

John

[rjm1cc]

Originally Posted by jrheydt

I have a bunch of mutual funds at Merrill Lynch and just received a notice that I have a $125 annual fee to pay. I don't recall ever having to pay an annual fee but it could have been taken out of my account cash or money account before but there wasn't enough in there this time so they sent me a bill for the balance of $56.

Is this type of payment normal?

John

I would look for another broker if all they do is hold your investments.
This is not normal from my experience.

[TrudyM]

Originally Posted by jrheydt

I have a bunch of mutual funds at Merrill Lynch and just received a notice that I have a $125 annual fee to pay. I don't recall ever having to pay an annual fee but it could have been taken out of my account cash or money account before but there wasn't enough in there this time so they sent me a bill for the balance of $56.

Is this type of payment normal?

John

IN my limited experience, I found different firms have different annual fees and they don't charge the same annual fees for all their clients either. If you have a large account or are householding with other accounts (ie many family members or trust accounts with the same broker) they sometimes wave the fees but this is something the broker sets up. Some charge depending on activity in the accounts. Ie if your investments are in funds that are no load and you are not trading stocks much then they aren't making commissions and they charge you if they are trading a lot in your account the broker can wave the fees. Talk to your broker and find out if something can be done. I get charged $85 every year on my Morgan Stanley account but the broker then credits it back to my account but I am householding with a lot of other family members that gives me some perks.

[JourneyOfLife]

I noticed your quote: "Don't curse the darkness when you can light a candle"

Here is a candle (of sorts) you can light to shed some light on the long term effects of high mutual fund expenses.

FINRA (regulator) has a tool that investors can use to compare mutual funds between companies to understand the effects of fees over time.

Compare your current funds to some equivalent funds at a lower cost fund company over a 20 year period.

Tools & Calculators - FINRA The tool is called Fund Analyzer. You should see the link on the page.

[walterray]

Originally Posted by TrudyM

IN my limited experience, I found different firms have different annual fees and they don't charge the same annual fees for all their clients either. If you have a large account or are householding with other accounts (ie many family members or trust accounts with the same broker) they sometimes wave the fees but this is something the broker sets up. Some charge depending on activity in the accounts. Ie if your investments are in funds that are no load and you are not trading stocks much then they aren't making commissions and they charge you if they are trading a lot in your account the broker can wave the fees. Talk to your broker and find out if something can be done. I get charged $85 every year on my Morgan Stanley account but the broker then credits it back to my account but I am householding with a lot of other family members that gives me some perks.

You are at Merrill Lynch and you are surprised at being charged fees? Were you also charged loads on your mutual funds? Very likely. Have you ever considered Charles Schwab? Might be worth checking out.

[rubicon]

Are you sure it is your brokerage firm making this request? Seems odd given the limited amount in your account. I would not do anything until I spoke with my broker to first verify its authenticity and if authentic why this is happening now

[Houselover]

Some brokers will charge the fee and refund it if you call them..I have used Schwab and TD Ameritrade and have never been charged these fee. Check with TD Ameritrade and they are offering $$ to move your accounts there..