Episode description
Episode description
In this episode of Honest Money, Warren Ingram delves into the often-confusing world of Unit Trust Fees and Administration Costs. Warren clarifies the differences between Total Investment Charge (TIC) and Administration Fees, and their impact on your investments, the merits of using a separate money market account versus an income fund for managing fees, and dissect the various elements of TIC.
Questions/ Topics:
- Demystifying Unit Trust Fees and Administration Costs.
- Understanding Total Investment Charge (TIC) vs. Administration Fees.
- Exploring the impact of fees on your investment journey.
- Debating the benefits of a separate money market account for fee management.
- Introducing income funds as a stable alternative.
- Breaking down the components of TIC, including performance fees.
- The critical role of choosing a good investment administrator.
- Risks of poor administration: tax errors and source charges.
- Considering direct investment in unit trusts and its administrative challenges.
- Practical tips for navigating investment costs effectively.
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