A life-policy premium leaves your bank account. A fund fee never does.
Some costs are easy to spot, because they show up as a monthly payment you recognise. Others are deducted inside an investment, which means there is no separate debit to notice and nothing to prompt the question.
For now, the goal is not to decide whether a cost is fair. It is to make each cost visible.
Start with recurring financial commitments: insurance premiums, medical-scheme contributions, account charges and payments for financial advice. Then look at investment statements or disclosures for fees charged by an advisor, platform, fund manager or another investment service.
These fee labels can overlap or differ between providers. Do not guess from the product name. Record the wording on the document and mark anything you cannot explain.
A cost can be reasonable if it pays for useful service or protection. It can still be a problem if the client does not know the amount, who receives it or whether it repeats. Visibility comes before judgment.
Try this now
Create four columns:
1. Who receives the money? 2. How much or what percentage? 3. How often is it charged? 4. What does it pay for?
Add at least one premium and one investment-related cost. Write “unclear” where the document does not answer the question.
Ask your advisor
- Which fees do I pay, who receives each one and what service does each fee pay for?
Next: Identify financial risks by consequence, not by product