What fees are associated with Waddell & Reed accounts?

Waddell & Reed, like many financial services firms, has a variety of fees that may be associated with different types of accounts and services. The specific fees can depend on several factors, including the type of investment account you are considering, the services you select, and any specific products you choose. Typically, these fees can be categorized into several types. First, there can be management fees for investment advisory services. These fees are often charged as a percentage of the assets under management and are designed to compensate financial advisors for the services they provide. It is important for clients to carefully review these fees because they can impact overall investment returns over time. Additionally, there may be commissions or transaction fees associated with buying or selling specific investment products, such as mutual funds or securities. Some Waddell & Reed investment products might have purchase or redemption fees, particularly in the case of certain mutual funds, which can vary by fund. Moreover, if an account is held in a retirement or other specialized investment vehicle, there may be administrative fees for account maintenance, which could include record-keeping and customer support services. Clients should also be aware of any potential expenses related to fund management, which might include management fees charged by the mutual funds themselves, independent of Waddell & Reed's advisory fees. To fully understand the fee structure associated with any specific account or investment product at Waddell & Reed, it is advisable to consult the firm's official materials or website. Detailed information, including fee schedules and disclosures, can often be found in the prospectus for a mutual fund or in the account agreement documents, which will provide a comprehensive overview of any applicable fees. By reviewing these resources, clients can gain a clearer understanding of the cost implications of their investments with Waddell & Reed.