Ask Terry Questions Fiduciary fee only fees

Fiduciary fee only fees

By Terry Savage on January 04, 2024 | Financial Planning / Retirement

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!

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