The financial advisors at Net Worth Advisory Group are strong believers in full disclosure. We strongly believe every investor should know exactly what they are paying, and should receive value and service that is equivalent to that fee.
The sad reality is, most investors have no idea what fees they are paying, and to who. Take your IRA, for example. Some realize they pay their mutual fund managers. Others, because the manager fees come directly out of their mutual funds accounts, do not. Right now, the average US stock mutual fund charges 1.31% annually.
However, the fees don't stop there. The financial advisor that services the IRA plan may also draw a cut. In many common scenarios, this fee is an additional 1%. By the time all fees have been paid, it is not unusual for total expenses to be around 2.3%. So are you getting 2.3% of value from your investment and advisor?
FYI - Since this post is about disclosure, allow me to mention that Net Worth Advisory Group's clients usually pay no more than an all-inclusive fee of 1.5% of their invested assets. This fee covers the cost of their investments, the advice they receive, and all transaction fees.
1 comment:
A financial planner can be a great benefit, but how do you know if your planner or advisor is giving you the advice you need?
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