It’s finally time for full disclosure! Starting February 2017, advisors will be legally required to include their compensation and management fees on every statement you receive.
Typically, advisors are paid 1% of the market value on a client investment account. Investment companies are paid 1.5% for management.
This is pretty much industry standard. But what isn’t standard is the value they provide – or lack thereof, which is precisely why this new regulation is a game changer. Now you’ll know what you’re paying for.
What full disclosure reveals.
Did you know that banks charge the same fee as financial planners with little personal service (the “your call is important to us” message doesn’t cut it), let alone monitoring.
Full disclosure enables you to take a critical look at what you’re paying for in relation to what you’re earning. It protects you. It keeps you informed. It allows you to comparison shop.
It also spurs critical questions like this one: do financial planners earn their keep?
Are Advisors Worth it? According to research, we are.
As you can see, those with an adviser do better financially and feel more confident about their future.
In the next few blog posts, I will talk more about fees, how much you actually pay, discuss the value we add and how competitive our fees are. Stay tuned!