What are all the fees associated with Honest Dollar accounts?
1) Monthly wrap fee: The only fee that Honest Dollar charges for services is a flat monthly fee. This monthly fee, also called the “wrap fee”, is for Honest Dollar services, and includes most of the investment expenses that are typically paid by the retirement account holder. The fee includes retirement account establishment/maintenance expenses, investment advisory fees, and brokerage fees. The wrap fee does not include fees charged by each exchange traded fund’s (ETF) managers or other fees and expenses that are reflected in the price of the ETF shares. The Custodian may also charge fees in addition to the wrap fee for ancillary services
2) ETF fees: The contributions you put into your Honest Dollar retirement account is invested in a portfolio that consists of ETFs. These ETFs will incur expenses and fees that are not charged to you directly but affects the return or performance of the ETFs. You can find the expenses and fees for each ETF here:
3) Fees for account related services: There are also certain circumstances, such as for withdrawing or transferring funds from your Honest Dollar retirement account, where you will be charged by the custodian, APEX Clearing Corporation. For more information about your fees, please click here. In addition, there may be IRS (Internal Revenue Service) early withdrawal penalties that apply depending on the type of IRA you have and other facts and circumstances. You should consult with a tax professional regarding any withdrawal penalties as well as income taxes that you may be subject to in connection with any withdrawal or termination of an Honest Dollar account.