I wanted to reblog this post as you look at your year-end brokerage statement. It is always important to perform a cost/benefit analysis regarding the investment advisory fees, commissions and loads , and other fees for additional services.

Latticework Wealth Management, LLC

More and more financial professionals are charging clients based upon assets under management (AUM).  A common fee is 1%.  The fee for a $1 million portfolio would be $10,000 ($1,000,000 * 1%). Now you have heard me talk about the importance of keeping fees as low as possible.  Essentially you are trying to maximize your investment returns each year.  If you have quite a few needs, a Financial Advisor usually can provide a number of different services and advice.  For example, you also may need assistance with legal and tax advice.  Additionally, you may have more complex financial planning needs.  Financial professionals will assist you with portfolio allocation always.  Now I am going to look at AUM fees in a way that you may not be familiar with.  I can tell you already that the financial services industry will not be happy or agree with this presentation.  However, my goal…

View original post 2,905 more words

Advertisements