If you’ve ever looked at your account statement and wondered exactly what you’re being charged and why, you’re not alone. Fees are one of the most common questions clients ask us — and for good reason. You deserve to know exactly how your money works for you, including the cost of managing it.

At GenWealth, we believe transparency starts with education. Here’s a straightforward breakdown of how investment account fees typically work, and why we structure things the way we do.

Two Main Types of Accounts, Two Different Fee Structures

Most financial advisory firms — GenWealth included — offer two primary types of investment accounts: brokerage accounts and advisory accounts. Each comes with a different fee structure, and each serves a different purpose depending on your goals.

Brokerage Accounts: Buy It Once, Own It

Think of a brokerage account like buying a movie at the store. You pay a one-time cost upfront, and once you own it, it’s yours — no additional charges for holding onto it. If you decide later you want a different movie, you’ll pay for that one separately.

That’s essentially how a brokerage account works. When you purchase an investment, there’s typically an upfront cost, and no ongoing management fee after that. These accounts are built for a buy-and-hold approach — the idea is to choose your investments and stay the course for the long term, rather than trading frequently.

Advisory Accounts: Pay for Ongoing Access and Management

Now think of an advisory account like a streaming subscription. You pay a recurring fee, and in exchange, you get ongoing access — the ability to change what you’re watching (or in this case, what you’re invested in) without paying extra each time you make a change.

Advisory accounts work similarly: you pay an annual fee — typically billed in smaller installments throughout the year — and your portfolio is actively managed and adjusted as market conditions, your goals, or your life circumstances change. Because the fee is tied to your account’s ongoing value rather than charged all at once, it’s also billed periodically rather than in a single lump sum. This means the fee reflects how your account is actually performing over time.

Which One Is Right for You?

Neither structure is inherently better — they serve different needs:

• A brokerage account may make sense if you prefer a long-term, buy-and-hold strategy and want to minimize ongoing costs.
• An advisory account may make sense if you want the flexibility to adjust your portfolio over time and prefer ongoing, active management aligned with your changing goals.

Our job isn’t to steer you toward one or the other based on what benefits us — it’s to help you understand which structure fits your situation. We look at every recommendation through one simple lens: does the value to you outweigh the cost? If it doesn’t, it’s not the right fit.

Both account types involve investment risk, including possible loss of principal, and neither guarantees a profit or protects against loss. Liquidity, tax treatment, and the level of ongoing service can also differ between the two — all worth discussing with your advisor before choosing one over the other.

What About Annuities?

Certain annuity products — designed with a goal of providing income for life — also carry associated fees, whether upfront or annual. It’s a fair question to ask why these fees exist.

The short answer: annuities aren’t just an investment, they’re a tool. Their purpose is to help provide income you’re less likely to outlive, supporting long-term financial confidence in retirement. Any guarantees associated with an annuity are backed by the claims-paying ability of the issuing insurance company — not by GenWealth or LPL Financial. When you’re evaluating a fee like this, the right question isn’t just “how much does it cost?” but “what am I getting in return, and does that value justify the cost?” For many clients focused on income they’re less likely to outlive, the answer is yes — but it’s a conversation worth having in detail with your advisor, since every situation and every product is different.

Our Approach: Fee Agnostic, Client-Focused

You may hear us describe ourselves as “fee agnostic.” That simply means we don’t favor one type of account or compensation structure over another. Our focus stays on one question: what’s genuinely best for you? The right account structure depends on your goals, your timeline, and how involved you want your advisor to be in managing your investments day to day.

Let’s Talk

Fees shouldn’t be a mystery, and they shouldn’t be something you’re afraid to ask about. If you have questions about what you’re currently paying, why, or whether a different account structure might serve you better, we’re always happy to sit down and walk through it — plain language, no pressure, just clarity.

Securities are offered through LPL Financial, Member FINRA/SIPC. GenWealth Financial Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.