Investment Fees and 401(k) Plans For Aflac Employees

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Apart from fees charged for administration of the plan itself, Aflac employees must consider how there are three basic types of fees that may be charged in connection with investment options in a 401(k) plan. These fees, which can be referred to by different terms, including: Sales Charge, Management Fees, and Other Fees.

'Investment products that require significant management, research and monitoring services generally will have higher fees.'

Sales Charges

Also known as loads or commissions. For Aflac employees, These are transaction costs for buying and selling of shares. They may be computed in different ways, depending upon the particular investment product.

Management Fees

Also known as investment advisory fees or account maintenance fees. These are ongoing charges for managing the assets of the investment fund. They are generally stated as a percentage of the amount of assets invested in the fund. Sometimes management fees may be used to cover administrative expenses. Those employed in Aflac should know that the level of management fees can vary widely, depending on the investment manager and the nature of the investment product. Investment products that require significant management, research and monitoring services generally will have higher fees.

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Other Fees

This category covers services, such as record keeping, furnishing statements, toll-free telephone numbers and investment advice, involved in the day-to-day management of investment products. They may be stated either as a flat fee or as a percentage of the amount of assets invested in the fund. As a Aflac employee, understanding the different types of fees and how they are applied is imperative when looking to avoid overpaying and being taken by surprise.