Fiduciary fee only fees
Is ~1% of assets a usual and customary charge per year to manage assets?
Terry Says
True “fee-only” financial planners charge a set fee, typically an initial fee and a fee for annual or semi-annual updates. but that covers more than “asset management” and goes into advice about taxes, estate planning, etc.
Planners that charge a percentage fee — a percent of assets under management — certainly won’t want you to take assets and put them in your own Treasury bill account, for example. And that might be a better solution to part of your assets. But since they are compensated on total assets, they likely won’t make that recommendation!
That said, 1% is a typical money management fee. And if you’re getting good advice, it’s worth paying for.
And just charging an annual fee does not turn anyone into a FIDUCIARY! Get your advisor to put that in writing!
