How much do you earn on my relationship?

This is one post in a series based on our “Tough Questions for Your Advisor.” Each post covers one of the important topics we discuss with our wealth management clients.  Today’s topic is:

How much do you earn on my relationship?

In investing, you typically see some fees on your financial statement and trade confirmations, but there are normally fees that you don’t see too.  It’s important to be aware of these costs and try to keep them low, as they can eat into investment returns.  It’s also important to be aware of any conflicts of interest your financial advisor may have in recommending one investment over another.

The visible fees include transaction fees or management fees paid to your financial advisor.  Fees you typically don’t see include investment fees for mutual funds & ETFs (expense ratios), added markups on bonds, or hidden sales loads on some funds.  If you’re working with a broker or certain types of financial advisors, some of these fees may be paid directly to them.

Hidden commissions or sales loads don’t necessarily mean you should find a new advisor, but it’s important to be aware of these fees and any potential conflicts of interest.

At Glassman Wealth, the only fee we earn is paid directly to us by the client, and we earn no commissions or sales charges on any of our recommendations.

Want to know more? Check out the rest of the posts in this Series:

 

Want to stay up to date on what we are thinking and discussing with our clients?

Fill out the form below and we’ll send our Questions to Ask Your Financial Advisor every quarter.




As always, we keep your email address secure and will never share it with any third party. By subscribing you’ll receive four emails per year. No more, no less.

Barry Glassman, CFP®
PLEASE SEE IMPORTANT DISCLOSURE INFORMATION