Investment Account
Hi, Terry. We took your advise and contacted a Fiduciary planner. I called Randy Bruns at Modelwealth. He looked over our Russell2000 account. He found we were paying a 1.6% advisory fee as well as other fees totaling 2.58% per year!
We wanted to switch to a Fidelity Vanguard account so our current adviser/broker advised us to liquidate the 26 accounts and convert to cash to avoid paying transfer fees. We did that and found out we were charged $125.00 for each of our 26 accounts.
Modelwealth thinks this ridiculous. What do you think? What can we do at this point ?
Terry Says
First, I’m glad you found Randy. He is one of my favorite financial planners. You’re in good hands!
Second, I’m posting this story as a warning to others. I think these selling fees are outrageous!
I went to BrokerCheck.FINRA.org and checked your broker’s registrations (I deleted the name) and found no disclosures that would alert me.
SO, this is a message to ALL investors about HOW BROKERS MAKE THEIR MONEY! It’s a combination of commissions, ongoing fees, and outrageous charges like that “selling fee” for each fund you owned.
EVERYONE SHOULD ASK: How much did I pay you to: 1) invest in this product, and @) ongoing annual management fees, and3) costs when I sell out!!
(I hope that money was inside an IRA or other retirement account so at least the recommendation to liquidate did not trigger taxes!)
Now, if you want me to be public about this, please send me an email with the contact info for your old broker (who made you”broker”) and I will call to see if he will respond because this would make great fodder for my column!)
