It’s been a while since I ranted about this.
I had recent prospective clients approach us, a Humble Achiever couple having just sold their business and made work optional last year.
They had concerns about the fees being charged to them by their current advisers. They were being charged an asset based fee (or a percentage based fee of their retirement funds).
Initially the 1% didn’t sound like much, but when it’s 1% of $2.5 million that’s $25,000 a year!
More importantly, what value do they get for this fee and do they see it?
They didn’t.
They did however see the value in working with someone because they didn’t want to do this alone. They want to enjoy their time, continuing to live a comfortable life and provide a legacy for their family. That’s the basis on which we’ve engaged. We’re working on a agreed fixed fee for a level of service that makes sense to them, not tied to a % of their investment funds.
That’s what you get when you work with an independent financial adviser.
If you are a Humble Achiever getting charged an asset based fee by your adviser, it might be time for a second opinion
