Monthly Archives: September 2012

What To Know About Trailing Commissions

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Manage (And Protect!) Your Investments: What You Need To Know About Trailing Commissions

It’s no secret that, when it comes to successfully managing and protecting our financial investments, knowledge equals empowerment. While most of us maintain a steady focus on the upswing (or downturns) happening in our portfolio at any given time, we often fail to have a working knowledge on some of the reoccurring, long term fees and obligations we incur throughout the lifespan our of investments. Case in point: trailing commissions.

Not quite sure what trailing commissions involve? You’re certainly not alone. Here at iRefund, many of our financial experts find that even the savviest investor can sometimes feel a bit blurry on some of the small print details attached to their funds. Fortunately, the team at iRefund can help you to understand what a trailing commission is, how it may affect your monetary reserves, and (most importantly) how you can effectively manage and protect what is rightfully yours.

Get The Basics: What Is A Trailing Commission And Where Is It Incurred?

 By definition, trailing commissions are simply reoccurring charges incurred on investments funds. The overall fees are based on a varied percentage of your overall investment value and are allocated to the advisor who coordinated your fund on an ongoing basis. As a general rule of thumb, most fee percentages range from 0.4% - 1.2%. While that doesn’t seem like a huge spread, consider this: over the lifetime of a $100,000 investment, you could be spending $1,000 annually in commission charges. When added up over time, these fees can really make a significant financial impact.

Trailing fees are also included on superannuation and allocated pension accounts as well as:

Personal Insurance Policies: A trailing commission is tacked onto virtually all personal insurance policies. Whenever you pay life, trauma, and/or income protection premiums, it’s a safe bet that you’re paying a trailing commission (generally 10-30%!) to the source that generated coverage for you.

Home Loans: Yes, a trailing home loan commission is attached to loans that required mortgage broker assistance. However, it’s important to note that the overall setup on a home loan commission varies from other trailing fees as the bank has to reimburse the mortgage broker from its own reserves and not from the homeowner’s monthly mortgage payments.

Trailing Commissions: You Do Have Options

Think you’re in the clear because you cut out the middle man advisor and went direct to your super fund or provider? Guess again. Trailing commissions in these scenarios are not refunded to portfolio owners (aka the customer!), but rather kept by the investment managers on the account. It’s all part of the built in infrastructure that mandates trailing commissions can’t be avoided. In short, often it’s not a matter of if a fee is incurred, but rather, where the fee payment will go.

Fortunately, there is hope when it comes to successfully navigating through the trailing commission process. iRefund’s team of professional and reputable financial analysts can help you maintain a steady focus on what you’re currently spending due to these long term charges. Rather than continuing to pay thousands of dollars per annum in trailing commissions, iRefund can help you determine which ones you have a claim to and work with you to get the refund you are entitled to.

 

 

Are You Missing Out On A Commission Rebate?

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Did you know that, if you have an investment portfolio, chances are you’re incurring annual trailing commissions on some, or all of your investments? It’s true. Here at iRefund, we know first hand that many of our clients are shocked when they first discover that most of their reserves have yearly charges, known as “trails” associated with them. And it’s not just the investments that are racking up these fees; insurance policies, home loans, and even superannuation products often include these trailing fees.

Fortunately, when it comes to trailing fees, investors do have options. At iRefund, our team of professional advisers make it their top priority to partner with our clients to ensure they are aware of any commission rebates they might be eligible for. From mortgage refunds and beyond, iRefund can help you keep a steady focus on any commission rebate possibilities in your portfolio to ensure you protect your assets and keep your money right where it belongs – in  your wallet!

What You Need To Know About The Commission Rebate Process

Feeling a little sceptical about the possibility of receiving a commission rebate? You’re not alone. At first, many of our clients feel that commission rebates sound too good to be true. However, make no mistake, commission rebates are a valid and legitimate entity. In the past six years alone, one leading commission rebate specialist assisted with the reimbursement of over $1 million to investors just like yourself.

In fact, research shows that the average investor is often eligible for over $1,700 annually. Most importantly, these commission rebates often don’t require heavy lifting (aka exorbitant paperwork!) on the part of the investor. iRefund can help you follow proper protocol to get your commission rebates back as quickly and painlessly as possible. It really is that simple.

Some Simple Facts About Your Trailing Fees

Still not sure if chasing your commission rebates is worth your time? Consider the following:

Trailing fees are based on a specific percentage of an investment’s overall value. The greater the worth of your portfolio, the greater the total charges you may be paying to third party advisors and investment firms. As a general rule of thumb, insurance policies tack on a whopping 10-30% trailing fee to your policy provider every time you pay your premium. Additionally, other funds and investment often falls in the 0.4%-1.2% range. That means that if you hold a diversified portfolio, you could be getting slammed with fees across the board that can add up to thousands of dollars every single year.

 However, working with iRefund to look into your commission rebate eligibility is free. Our commission collection and refund capabilities are a no-cost service – you pay nothing for enlisting our help. In short, we don’t get paid unless you do!

Additionally, we firmly believe in giving our partners back what they’ve rightfully earned. That’s why, once we have helped you secure your commission rebates, iRefund has a cap on our total retaining fees. Unlike investment firms that tack on fees and charges based on an overall value percentage, iRefund caps our refund fees at $395 per refund account, or 50% of the first $790 retained. There could literally be thousands of your dollars simply waiting to be claimed. Partner with iRefund today to help fully protect the assets you’ve worked so hard to obtain!