Investing Fees 101 – How to Spot Hidden Costs in Your Fidelity or TIAA Plan

Catch up on Part 1 and Part 2 to learn how to build the right investment mix for your life and goals

You probably know that investing involves risk, but what many people don’t realize is that investing also comes with costs, and some of them are surprisingly well hidden. These costs might not show up on your paycheck or monthly statement, but they quietly reduce your returns over time.

If you’re using a Fidelity or TIAA retirement plan through your university, it’s worth learning how to spot and understand these investment-related fees. You’re not being overcharged on purpose; these costs are built into the structure of many funds. But knowing where they live (and how much they bite) can help you make smarter choices about where your money goes.

What Are Investing Fees?

Most of the time, the fees you’re paying inside a retirement plan don’t come from your university or the plan provider directly. They come from the investments themselves, specifically, the funds or annuities you choose.

Common fees include:

• Expense Ratios: This is the percentage of your investment that goes to fund management each year.

• Annuity Charges: Some annuities (especially in TIAA plans) include M&E fees, administrative fees, and surrender charges.

• Transaction Fees: Certain actively managed funds may trigger fees when they buy or sell underlying assets.

• Account-Level Fees: Some plans charge extra for specific services, but these are usually disclosed up front.

Why Fees Matter More Than You Think

Fees may seem small, but over decades, they compound, just like your investment returns. Paying 1.5% annually instead of 0.5% may not sound dramatic, but on a six-figure account over 20+ years, that difference could add up to tens of thousands of dollars. High fees don’t always mean better performance. In fact, research consistently shows that low-cost funds tend to outperform over time.

How to Find Fees in Fidelity and TIAA Plans

Fees aren’t always easy to spot, but they are there. Here’s how to find them:

1. Log in to your Fidelity or TIAA account

2. Click into each fund you’re invested in

3. Look for terms like:  

• “Expense Ratio”  

• “Fund Fees & Expenses”  

• “Net Annual Operating Expenses”

Most index funds charge less than 0.10% per year. Actively managed funds can charge 0.50% to 1.50% or more.

What About Advisor Fees?

Some people assume that working with a financial advisor automatically means paying high or hidden fees. That can be true, but not always. If you choose to work with an advisor, it’s important to understand how they get paid and what services you’re actually receiving in return.

The good news is that some advisors now operate with full transparency. For example, at Provizr, fees are simple: 0.75% for portfolios under $2 million and 0.50% above. There are no hidden costs, product commissions, or surprise fees, just straightforward pricing if and when you decide to get help managing your investments.

Even if you decide to go the DIY route, the key takeaway is this: know what you're paying, whether it's to a fund, a platform, or a person.

Coming Up Next

In part 4, we’ll talk about when and why to rebalance your retirement portfolio, and why “set it and forget it” isn’t always the best strategy.

If you want a deeper dive into how funds, fees, and financial tools actually work, check out our free guide: Investing 101 for University Employees