Investment Fees
Hi Terry
I appreciate how you share your expertise on WGN radio, it’s always enlightening. I’m concerned that we’re overpaying on our investment portfolio. I’m 61, husband is 65. Both of us still work-his income is steady, as a real esate broker, mine fluctuates.
We have $1,109,000 being managed thru an agent at Coltiva Wealth. Our former accountant connected us, and she’s still on the phone calls and emails. This is what we pay: “Your all in advisory fee with us is 1%. This is an annual figure broken down on the quarter, meaning .25% of the account value is deducted each quarter. This includes all trading costs and platform fees.”
We’ve recently been in touch with LastingMark Retirement Group, who charge a $3000 flat fee plus internal investment fees (estimating roughly $260) so $3260 total annual fee.
We know nothing about investing, and I’m afraid of moving the money and making a mistake. Are you familiar with either company, or do you think we should go back to Vanguard? Or is this something you could take on without costing us a fortune? Thanks for your help!
Terry Says
Whew, you have just enough money to make an investment mistake that is costly.
Let me ask you first: Do this firms promise anything more than just investment advice?
Are they offering financial planning, retirement income planning, tax planning, overall advice on estate planning?
If not, you could have done it yourself and paid less. After all, the market as I write this is at all-time highs! You’ll never know if their investment advice is any good until you ride through a bear market and see what happens. And we haven’t had one of those for a long time — though I have no doubt a bear market will come along in your remaining lifetime.
I think you need to have a consultation with a fee-only FIDUCIARY financial planner who is not trying to sell you anything. Please watch the video at this link and learn how to find someone you can trust.
Do this before you challenge your current advisor or consider another “investment advisor”. You should be getting a lot more for the money you pay, no matter how they charge!
