money sectionmoney sectionAccording to the U.S. Department of Labor, if you are 35 and getting a 7 percent return on your 401(k), a fee of 1.5 percent instead of 0.5 percent will decrease your savings by 28 percent by the time you retire. Knowing what fees 401(k) plans charge can help you select plan options with lower fees.
The rising cost of college tuition has resulted in a subsequent rise in the amount of student loans applied for to pay for those tuition costs. Most students seeking financial aid must complete a Free Application for Federal Student Aid provided by their college or university. Upon completion of the application process, the student is notified about the types and amount of aid that will be offered by each school designated on the FAFSA application. Depending on the overall cost of tuition, fees and expenses at the student's college of choice, it may be necessary to decline some of the…
Hiring a property manager to oversee your investment in real estate is an important detail that should be taken seriously. Your property may be one of the biggest investments that you'll make, so you need a management company to care for it as responsibly as you would. Property managers charge a variety of fees to compensate for work performed. Start by comparing these costs when selecting your management company.
The U.S. Department of Veteran's Affairs (VA) offers low down payment, low interest mortgage loans to qualified military service men and women. Conventional loans through private lenders and Federal Housing Administration (FHA) loans require some time of mortgage insurance. VA loans do not have such requirements. Instead, VA borrowers must pay a VA funding fee.
The Federal Housing Administration (FHA) requires a funding fee, more commonly known as a Mortgage Insurance Premium (MIP), at the time of closing. This premium ensures a lender that the loan will be repaid even if the borrower defaults on the mortgage. As long as a home buyer meets income guidelines, the MIP is tax deductible.
An investment fund provides an opportunity for you to save and make money. While choosing the right fund, research on various fees that a fund charges. A management fee is the amount paid to the fund's investment manager for the investment portfolio administration. In some funds the management fee may also include other administrative services provided to manage your fund such as, printing of prospectus and mailing services. Calculating a management fee depends on the specific fund you choose.
The quoted percentage management fee is rarely the only fee charged by property management companies. To calculate the fees you will pay over a year, or compare management companies to find the best deal, read the contracts carefully to understand which charges are included in the basic fee and which are extras. A property management company usually deducts its fees from rents collected and then forwards the balance to you. This can make it more difficult to dispute charges after the event. To compare fees from several companies, calculate the effective management fee of each company.
Mutual fund companies charge a variety of fees to cover the expenses of running the fund. Fees can vary by fund company, funds within a company and even within different share classes of the same fund. When you invest in a mutual fund, it is important to understand what fees you are paying and their historic relationship to fund performance. A good decision weighs both fees and overall fund performance to find the right fit for you as an investor.
Mutual fund companies are permitted by the Securities and Exchange Commission (SEC) to deduct fees from fund earnings. Fund companies typically do not highlight fees in magazine and website advertisements, but the SEC does require fee disclosure near the front of the mutual fund prospectus. The fees are quoted as a percentage of the total fund operating expenses and include operating expenses like salaries for the fund managers, transaction costs when securities are bought and sold within the fund, administrative costs for accounting and legal fees, and marketing expenses of promoting the fund.
A broker can be a valuable ally in your quest to do well in the stock market. She buys the shares from the companies for you directly when you ask her to invest a certain amount of money in a certain market. She can also help by giving you advice and creating a portfolio of diverse and lucrative investments, all while taking your preferences on safety and return into account. When choosing a broker, one thing to consider is the fees she will charge.
Real estate agents are invaluable sources of information for first time home buyers, but they do come at a cost. According to Bloomkey.com, Realtors charge an average of just over 5 percent of the home's sales price for commission. Most people will tell you that the buyers don't have to worry about this since the sellers pay the commission. This is a bit misleading, though, because most sellers will try to factor the commission into the price of the house, thus making the buyers pay more. Either way, calculating the realtor fee is simple once you know the commission rate.
UPMIP stands for Up Front Mortgage Insurance Premium. This is a fee charged to FHA home buyers to initiate escrow in their mortgage insurance account. This is very similar to the funding fee for VA loans.
The United States Department of Agriculture offers home loans in rural areas with the goal of helping low-income families obtain home ownership. These home loans through USDA offer 100 percent financing, so no down payment is required. However, a mortgage funding fee is used to guarantee the mortgage or prevent future losses from foreclosures. Borrowers can either pay the funding fee, which is figured as a percentage of the loan amount, or add it to the mortgage so it is financed.
The present discounted value (PDV) of a franchise refers to the value of a series of future payments for a predetermined period. The value is discounted to account for factors---time and investment risks---that can depreciate what a franchise is worth. In a franchise, the PDV refers to the expected fees the franchiser is to receive. These fees can include renewal fees, advertising costs, royalties, product margins, rebates and other potential sources of revenue so long as the franchisee stays with the company. These represent the present discounted value of a franchise.
