Financial advisors can be an invaluable tool for your future, but they shouldn't be able to overcharge you or treat you poorly.
I’ve said this before and I’ll say it a thousand more times if I have to, but it is crazy how much some financial advisors charge their clients. It drives me absolutely crazy when I see what clients paid their previous advisors. Especially because it doesn’t have to be that way.
What’s even worse, though, is how they treat the clients that they’re gouging.
An unbelievable experience from a trusted financial advisory firm
A client came into my office recently, concerned about a notice he’d received from his advisor.
He was in retirement and working with a well known and popular company in Atlanta for over a decade.
He’d followed all of their recommendations and never heard much from them until he received a notice telling him that if his assets dropped below a certain amount, they wouldn’t be able to help him anymore.
In English, this means, “We’ll help you with your money and takes your fees until you’re close to running out of money. Then we’ll cut you out because it’s not worth it."
The first thing I did when he told me this was looked at his investments.
Nothing popped up at me as being unhealthy. His investments were pretty standard, what any average-joe would have picked out for themselves. It didn’t require any expert-level advising.
But he obviously had a money problem, so why was his advisor threatening to kick him out? This when a good advisor would jump in and offer help.
Know What You're Paying for good advice
I asked him how much he was paying the company for this basic advice.
he didn’t know.
I asked if he was receiving any income planning or additional services from them.
He said no.
I asked him if they had ever reached out to him about his investments losing money, before this threatening notice.
He said no.
I eventually found a document at the back of his packet that listed his fees.
Do you want to guess how much he was paying for this “investment management?”
1% is the industry standard and is what we charge our customers.
This company charged him 2.5% for their services, which is double the industry standard for money management. It didn’t come with ANY additional services or communications. And, they’re one of the top 5 investment firms in the country, so you know this is probably the same way they treat everyone they work with.
It was infuriating to see the way this man had been treated, when there was an easier way for him to manage his money and grow his wealth.
Ask the right Questions & get Help for the right cost
I urge you to take the time to figure out what your financial planner is charging you.
It doesn’t matter if you’re about to sign up with your advisor or if you’ve been in a contract with them for years.
It’s never too late to ask the tough questions and make sure you’re getting the most for your money.
And you can always do like the friend who reached out did and get a second opinion. I’m happy to go over your current contract for free and give you a my feedback. There’s no obligation for this meeting, either. If you decide at the end of our meeting that you like where you are and want to stick with it, that’s great. If you decide we might be a better fit for you, even better! Just make sure you sign up through the link below and decide what’s best for you and your money.