Are you paying too much for your financial adviser?

  • Annual advisory fee rate: 0.85%
  • Annual manager fee rate: 0.13%
  • Annual platform fee rate: 0.17%
  • Total annual asset-based fee: 1.15%
  • The total fee of 1.15% is within industry standards
  • Advisers typically charge between 1% and 1.50%
  • Advisers may also charge additional product fees
  • Ask for details on the services being provided
  • Inquire about investment performance and diversification
  • Check if the adviser is a fiduciary
  • Consider switching advisers if necessary
  • Explore alternative fee arrangements

Many individuals are unsure if the fees their financial adviser charges are normal. It is important to understand the breakdown of these fees and determine if they are reasonable. The total annual asset-based fee of 1.15% is within industry standards, but it’s worth noting that advisers typically charge between 1% and 1.50%. Additionally, advisers may also charge additional product fees. To assess whether the fee is worth it, ask for details on the services being provided, inquire about investment performance and diversification, and check if the adviser is a fiduciary. If any issues arise or if the adviser is not meeting your needs, it may be worth considering switching advisers. Alternatively, you can explore alternative fee arrangements, such as hourly or one-time financial plan arrangements.

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Key People: Joe Favorito (Certified Financial Planner at Landmark Wealth Management), Jim Hemphill (Certified Financial Planner at TGS Financial Advisors), Bruce Primeau (Certified Financial Planner at Summit Wealth Advocates), Ryan Haiss (Certified Financial Planner at Flynn Zito Capital Management), Marianela Collado (Certified Financial Planner at Tobias Financial Advisors), Bri Conn (Investment Adviser Representative of Childfree Wealth and Co-host of the Childfree Wealth Podcast)

Factuality Level: 7
Justification: The article provides information about different types of fees charged by financial advisers and offers insights from certified financial planners. The information provided is generally accurate and objective, with experts stating that the fees mentioned are reasonable but could potentially be improved upon. The article also suggests questions to ask advisers and considerations for finding a new adviser. Overall, the article provides useful information and guidance for individuals seeking to assess the fees charged by their financial advisers.

Noise Level: 8
Justification: The article provides a detailed breakdown of the fees and offers insights from financial planners. It addresses the question of whether the fees are normal and suggests additional questions to ask the adviser. The article also discusses the importance of finding a fiduciary adviser and provides resources for finding one. Overall, the article stays on topic, provides relevant information, and offers actionable insights for readers.

Financial Relevance: Yes
Financial Markets Impacted: None

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses fees charged by financial advisers and provides advice on assessing the reasonableness of those fees. There is no mention of any extreme events or their impact on financial markets or companies.

Reported publicly: www.marketwatch.com