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Jason Zweig: Why You’re Paying Too Much in Advisory Fees

TedTed
in Fund Discussions
FYI: The way financial advisers charge for their advice often makes no sense, and it needs to change.

The typical adviser charges absurdly high fees to manage your money, often with mediocre results—but next to nothing to provide financial-planning expertise, which can be hugely valuable.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2015/06/19/why-youre-paying-too-much-in-fees/tab/print/

Comments

  • BobCBobC
    Mr. Zweig raises a good point, but the fact is that no matter how hard fee-only planners cajole clients, some insist on opting only for investment management. For those who want a more complete relationship, a retainer fee works very well. Without that, however, there are investors who want someone else to do it for them. The asset-based fee is really the only option. But I also agree that some advisory firms charge way too much for the investment-only work they do. We started using a retainer fee for our planning/investment clients more than 10 years ago, so I find all of this recent harrumphing somewhat silly. Where were these so-called experts years ago?
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