Join NBC3 and our panel of financial experts, as we answer your financial questions. Tonight, our panel of experts will answer your questions about "hidden" bank fees. Can you do anything about them?
Our panel of Certified Financial Planners for Monday, November 7 includes:
Dennis Hebert, Strategic Wealth Advisors
Sue Hansen, Hansen's Advisory Services
Richard Jenkins, Diversified Capital Management, LLC
Among the hidden fees we alerted you about:
>Mutual Funds. A lot of people think these are an alternative to riskier stocks, but be aware of fees that could go up over 2% of your investment. The industry average for fees is 1.44%, but there are some funds that charge less than 1%. The morningstar website has a listing of what different funds charge.
>Pension Plans. There are management fees, as well as fees within mutual funds, if they're included in your portfolio.
As of January 1, 2011, all those fees must be disclosed. If you're in a company-directed pension plan, you still have options:
you can direct your investments to funds that have fewer fees, and you can also 'encourage' fellow workers to join in urging your employers to go with programs that have lower fees.
>Debit and Credit cards. The big news recently was Bank of America's giving up its fight to charge monthly fees for debit cards, but there are still lots of fees out there. Bottom line, read your bank statement to ensure you're using the card enough (some even specify you have to use it a certain number of times each month, as either a debit or credit card), and that you're maintaining the correct balances.
>No interest debt consolidation. We all get offers of credit cards with 0 interest for 18 months, but if you think rolling all your debt into one is a solution, consider this: Most have an up-front payment required, that may be more than the interest you're now paying. And, most assume you'll be late on a payment, at which point they can jack your interest rate up to their maximum, in the 20%+ range. This note on timely payments: even though you've mailed early, your check could sit on someone's desk past the due date. If you're doing payments, electronic banking will ensure that it always gets there on time.
We welcome your emailed questions on money matters at money@cnycentral.com --Our panel will be back next Monday, with 'getting out of debt' as our focus.
