When you buy and sell shares, the brokerage charges you a fee for each trade. For example, both Schwab and Fidelity offer $4.95 trades.
When your financial advisor engages in excess trades on your behalf to rack up commissions and fees, it’s called “churning.” This practice is illegal, and you can report it to the SEC through the online complaint form.
Be careful when picking your retirement financial advisor, and work with someone who won’t take advantage of you.
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