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Heritage Group Plan: Fees. Heritage Education Funds International. Module Outline. Objectives Concepts Heritage Plan fee details Points to remember. Objectives. Identify fees associated with plan Explain fee details How they are paid and to whom How to calculate. Concepts.
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Heritage Group Plan: Fees Heritage Education Funds International
Module Outline • Objectives • Concepts • Heritage Plan fee details • Points to remember
Objectives • Identify fees associated with plan • Explain fee details • How they are paid and to whom • How to calculate
Concepts • Fees associated with plan • Disclosure of fees
Types of Fees • Subscriber Fees • Membership fee • Depository Fee • Plan Expenses • Administration fee
Membership Fee • $110 per unit • Pro-rated for partial units • One-time, collected from early contributions • Paid to distributor – Heritage Education Funds International, LLC. • Covers cost of distributing plan • E.g. sales commissions, marketing
Membership Fee Payment • Paid from contributions • Full contribution toward fee until 50% paid • 50% of contribution thereafter until fully paid • Remaining 50% of contribution to principal
Membership Fee Example 1 • 2 unit plan with contributions of $55/mth • Membership fee = $220; 50% = $110
Membership Fee Example 2 • 2 unit plan with contributions of $80/mth • Membership fee = $220; 50% = $110
Review Questions • Refer to the course book for review questions
Depository Charge • Varies by contribution frequency • Single – $1.00/unit • Annual – $2.00/unit • Monthly – $5.00/unit • Collected annually, from deposit account • Maximum of $50 per Plan per annum
Administration Fee • Up to 1% of principal and income • Currently 0.75% • Collected monthly from income • Paid to Foundation on behalf of distributor – Heritage Education Funds International, LLC • Covers cost of plan administration
Review Questions • Refer to the course book for review questions
Points to Remember • Membership Fee • $110/unit • 100% of contributions go to fee until 50% paid • 50% of contributions thereafter until fully paid
Points to Remember • Annual Depository Fee • Single contribution – $1.00/year • Annual contribution – $2.00/year • Monthly contribution – $5.00/year • Maximum of $50 per annum • Administration Fee • Collected monthly from income • Currently 0.75% (of 1%)
