Financial Planner — says they are a fiduciary, but fees are 2%!
Hi Terry, love your chats on WGN TV! We have a financial advisor that we have used for 10+ years. She has stressed that she is a fiduciary. We pay her about $2,000 a year in a fee. We currently have $1.1M invested with her which includes about $300k in 529 plans. Over the years I have asked her if she makes money on us besides the $2,000. She is a bit vague but once pushed she said yes but again couldn’t “quantify” it. I have tried to tear through statements and am guessing she is making another $15-20k in fees which she says is for her staff’s work. I am just signing a new agreement so we can move funds to TD Ameritrade so I can link with Quicken. The contract states Financial Advisor will get 1.3% annual fee and platform will get 0.7% fee. I just don’t understand the fiduciary but these additional fees. Does this seem right to you? Thank you sooooo much.
Terry Says
My immediate reaction is that that fee structure is INSANELY EXPENSIVE! Ridiculous to pay 2% in fees, not to mention the funds themselves are also charging fees! And she definitely shouldn’t be charging fees on the money that is in a 529 plan.
STOP right now and don’t sign this contract!
Please check in at Wealthramp.com to be matched personally with several FEE_ONLY, FIDUCIARY advisors!
Right now the government is not really monitoring the use of the word “fiduciary” — which means they pledge to put your interests first. But with that fee structure, this advisor is definitely thinking of herself first!
That link I just gave you will explain how they work.
