Do You Know What You’re Paying Your Financial Advisor?

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Looking for a financial advisor? Wondering how you’ll pay him or her — and just how much?

There are three types of advisors you can work with, according to certified financial planner Ron Carson, founder and CEO of Carson Wealth Management Group. The first will charge you commission; the second, a management fee on the assets handled; and the third, a hybrid of the first two approaches. But all might also charge you hidden fees.

“When you’re working with a financial advisor — regardless of what type of advisor they are — you need to really understand not only how they’re being compensated but what are the fees that aren’t so transparent,” said Carson, adding that many advisors themselves don’t understand all the hidden fees and expenses associated with asset management.

“You do have to nearly be a forensic accountant to find all these fees,” he added. “You’ll be shocked to know that, in some cases, the fee you think you’re paying could be a third or less of what the total fee is.”

It’s a good idea to look at an advisor’s Form ADV to see if there’s any additional compensation they’re able to receive, said Carson. (An ADV is the “uniform form used by investment advisors to register with both the Securities and Exchange Commission … and state securities authorities,” according to the SEC.)

“A way to be sure that you’re not paying a lot of additional costs is really understanding the most basic holding that you have in your portfolio and try not to own a lot of what we call ‘packaged products,'” where fees can be both high — and hidden, he said.

“Take control of how your investments are being managed and the expenses that you’re paying,” Carson said. “You have a right to know.”

CNBC

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

The Mutual Fund Fees We Don’t Talk About

Mutual fund fees are often discussed, but not fully appreciated by many investors. The ultimate cost of owning a fund is far greater than what meets the eye. This is primarily due to two reasons. First, only about a third of the total cost is reported by the expense ratio. Other hidden fees …

Despite Market Volatility, Advisors Still See A Bull Run

A strong U.S. economy helped propel the stock market higher in 2014, continuing the bull run. As a result, many Wall Street strategists remain, not surprisingly, bullish on the U.S. stock market—and they expect the advance to continue.

Why Rising Rates Won’t Kill the Bull Market

It has been nearly nine years since the Federal Reserve last raised interest rates, and many investors are uncertain about how inevitable hikes will impact the market. Certainly, accommodative monetary policies have contributed to the current bull market. Businesses have taken advantage of …
1 2 3 25 26 27 28

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation