Fees to be expected for a Investement advisor

[PickyTooth]

is 2.5 % to much ?

thanks for the help.

[Sniper]

What exactly are you getting for 2.5% ???

Sounds very high, roughly what's the size of your assets being invested?

[PickyTooth]

Starting with 50K.

as for what I'm getting, if by that question you mean am i getting accounting and all the works nop . It's really just for a finnancial planner

Also is the fee you pay in relation with how much you invest?
if someone invest 150k his fee is lower than someone with 50k right ?

thanks,

[Sniper]

[ QUOTE ]
as for what I'm getting, if by that question you mean am i getting accounting and all the works nop . It's really just for a finnancial planner

[/ QUOTE ]

Is that a 1 time fee for a financial plan that you then have to execute... or annual fee based on assets under management, and will they be making addn'l profit off your actual investment in funds they recommend?

[Mr. Now]

Fees are negotiable and 2.5% is way up there. Negotiate it.

For an idea of the upper range on fees currently charged, take a look at the sliding scale of Fisher Investments. They charge a kidney and a half for a "small" account of 500K.

Fisher does not publish fees but if you ask they will tell you. My understanding is that their fees start at 2.5% and work down from there based on account size (larger account = lower fees.) I believ the lower end of their range is in the 1.25% area.

For accounts in the 50-500K zone you can do quite well passively following the S&P Midcap (using an index fund) with your long-term cash.

The more passive the better for taxable accounts. Search the posts of 'rockrock' for some pointers on this approach.

It will save you alot of time, fees etc.

You might place like 20% of your cash with a Certified Financial Planner to get access to tax/estate planning/asset allocation advice. This way you paythe fee on the small amount you place with him and get access to some good solid expertise if you are new to the game.

[MatthewRyan]

Please do not pay anyone 2.5%. If you are smart enough to have found 2+2, you are smart enough to find a fee only planner , or invest the money yourself.

[PickyTooth]

[ QUOTE ]
[ QUOTE ]
as for what I'm getting, if by that question you mean am i getting accounting and all the works nop . It's really just for a finnancial planner

[/ QUOTE ]

Is that a 1 time fee for a financial plan that you then have to execute... or annual fee based on assets under management, and will they be making addn'l profit off your actual investment in funds they recommend?

[/ QUOTE ]

It's for assests under management.
I dont think they will make profit in the funds they recommend but I will get more details.

thanks for the help.

[jively]

[ QUOTE ]
Starting with 50K.

as for what I'm getting, if by that question you mean am i getting accounting and all the works nop . It's really just for a finnancial planner

Also is the fee you pay in relation with how much you invest?
if someone invest 150k his fee is lower than someone with 50k right ?

[/ QUOTE ]
I am a fee-based investment advisor. We charge a percentage of assets under management, and do comprehensive goal and retirement planning.

The relationship between an advisor and a client has to be win-win. The client needs a trusted advisor who can solve their problems, and the advisor needs a profitable client. The goal of most advisors is to have a small number of large clients. If a client of ours has $1 million to invest, the fee might be 1%. Larger assets have a smaller fee, and smaller assets have a higher fee.

At $50,000 and 2.5%, the advisor gets only $1,250 per year. With $1 million at 1%, the advisor gets $10,000 per year. My firm does not take clients with only $50,000. It just isn't profitable, and we can't service the small clients the way they deserve to be serviced.

I know many people on this board are in their 20s, and generally don't have the assets to hire a firm like mine. However, most people in their 20s and 30s need financial help. Many advisors charge only an hourly fee for services. The largest network of these type of advisors is called the
Garrett Planning Network. Perhaps you can see if their is a planner who gets paid on an hourly basis nearby to you.

Personally, I would like to work with more people in their 20s and 30s, but it's just not profitable. (That's part of the reason I like to answer questions and respond on this site. [img]/images/graemlins/laugh.gif[/img])

-Tom

Note: I am not associated with Garrett Planning Network in any way.

[Sniper]

[ QUOTE ]
Personally, I would like to work with more people in their 20s and 30s, but it's just not profitable. (That's part of the reason I like to answer questions and respond on this site. )


[/ QUOTE ]

Jively, your posts are appreciated! [img]/images/graemlins/smile.gif[/img]

[Ray Zee]

ask him to bring his last three years tax returns to the meeting with you so you can see how much he has made for himself. then you will be glad to use his investment advice. then wait for the stutter.