Most people need financial advice at some point. But before making a deal with a financial adviser, people need to know how much they are paying and what they are getting in return. This is what we describe as decoding advisor fees.
The fact is that this is not always clear. There are often a range of services and fee structures, and most feel intimidated by both the language and the promises. However, choosing the wrong advisor can result in a mistake that can compound over years, costing hundreds of thousands of dollars over a lifetime.
Often, it ends up being a better deal for investors to opt for a bare-bones service that just manages investments and doesn’t offer other advice. That’s especially true now that people can’t deduct certain investment management fees under the new tax law.
We take a different approach than many. We strongly believe that people need to build financial education. If a person can invest their money, no matter how small, with confidence and direction and without depending solely on a stock broker, banker, or financial advisor, then that person is financially independent. To us, financial independence can be seen as how much you depend on others for knowledge and decision making.
Not all of our clients and students become stock traders. But after taking our programs, they are able to make better decisions because they understand more about what type of returns they should expect. They also ask better questions with the end goal of decoding advisor fees and figuring out what they are getting in return.
Here are some key questions to ask your financial adviser.
- Of your packages/fee arrangements you offer, which one fits my needs and goals?
- What services am I getting for my money?
- Do I really need all of your services?
- Can all of my costs end up being higher than what we have agreed on?
- How often do we review the fees paid and services rendered?
Personally, we got tired of paying fees and took action to learn more about building this stock market income stream. However, that took coaching and education, which is what we offer in our programs.
A Coach that really knows what they are doing can be the ingredient that is the difference between winning and losing. Winners do things losers don’t want to do. Winners get coaches. Winners surround themselves with people that share their goals and their dreams. And help them move forward. Coaching is everything!