“I use a financial advisor who charged me $11,000 last year, met with me once, and my investments made 1% return. How much should I have paid for this?”
Your question about the appropriate compensation for a financial advisor is a very interesting one.
Some financial advisors are a great value at $11,000 per year. Some financial advisors are over-paid at $110.
The only judge that matters is – you. Do you feel you’re getting a good value for your dollar – or not? If you do – then $11,000 per year is fine. If you do not – then clearly $11,000 is way too much.
Does your advisor only manage your investments or do you receive advice and guidance on income tax issues, estate planning, life and long term care insurance planning, retirement planning, and all your other financial questions?
For many people who aren’t sure they’re getting a good value for their dollar a second opinion meeting is useful. In a second opinion meeting you review your current advisory relationship with a second advisor and receive feedback and recommendations. This gives you sound information with which to make your decision about your current advisor.
A second opinion meeting is conducted at no cost with no obligation and no expectation except that you will learn a great deal. If a second opinion meeting seems appropriate to you, please let me know and we’ll arrange one for you.
If you have questions or comments, please send them to Gene@AskMtM.com
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