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04-13-2014, 08:10 PM
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#1
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 349
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Advisor Fees Dropping
All I can say is it's about time this happens!
The wrong way to pay for financial advice
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I think one of the biggest trends we'll see over the next decade are financial management fees falling like a rock. They've already dropped in recent years, but there's still enormous fat to cut. Not only will AUM fees be pressured to decline, but the way advisors charge may be upended. The winner is you, the investor.
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04-13-2014, 10:48 PM
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#2
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Full time employment: Posting here.
Join Date: Feb 2011
Posts: 852
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Quote:
Originally Posted by aim-high
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Yay! This has been a thorny subject around here that I have harped on to the great consternation of some (including me) at times. Nice to see the popular press take up this absurd model of compensation.
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04-13-2014, 11:50 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Sep 2012
Posts: 1,570
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Long overdue.
However, I just talked with a friend who recently left a major wirehouse because they just INCREASED the base fees they charge their clients, especially the "smaller (less than $1mm)" clients. Talk about hubris!
__________________
You know that suit they burying you in? Thar ain’t no pockets in that suit, boy.
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04-14-2014, 12:22 AM
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#4
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Full time employment: Posting here.
Join Date: Feb 2011
Posts: 852
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Quote:
Originally Posted by gcgang
Long overdue.
However, I just talked with a friend who recently left a major wirehouse because they just INCREASED the base fees they charge their clients, especially the "smaller (less than $1mm)" clients. Talk about hubris!
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This happened to me with my last financial advisor before I found my current flat rate guy. They called us in for a meeting to introduce their new fee structure. I said, "that is very interesting. Here is my counter offer. No. Give me a flat rate fee like this competitor is offering or I walk." And I did. Reminded me of the scene in Godfather Part II when Michael tells the Senator trying to shake him down that not only will he not pay the Senator a bribe to help him get his gambling license but that he expects the Senator to pay the license fee for him. I loved it. (my wife was less thrilled with the drama)
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04-14-2014, 11:03 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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Quote:
Originally Posted by urn2bfree
This happened to me with my last financial advisor before I found my current flat rate guy. They called us in for a meeting to introduce their new fee structure. I said, "that is very interesting. Here is my counter offer. No. Give me a flat rate fee like this competitor is offering or I walk." And I did. Reminded me of the scene in Godfather Part II when Michael tells the Senator trying to shake him down that not only will he not pay the Senator a bribe to help him get his gambling license but that he expects the Senator to pay the license fee for him. I loved it. (my wife was less thrilled with the drama)
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When you say that "you walked," did you go DIY? Or are you still paying "the bribe," just less?
As I recall, Michael paid nothing as opposed to finding another corrupt politician who would accept less.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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04-15-2014, 07:52 PM
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#6
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Full time employment: Posting here.
Join Date: Feb 2011
Posts: 852
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Quote:
Originally Posted by youbet
When you say that "you walked," did you go DIY? Or are you still paying "the bribe," just less?
As I recall, Michael paid nothing as opposed to finding another corrupt politician who would accept less.
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You got me there... I walked across the street to an advisor at about a fourth of the cost. Also Michael did pay some people to murder a call girl and frame the senator...I did not do anything like that.
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04-18-2014, 07:32 PM
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#7
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Confused about dryer sheets
Join Date: Apr 2014
Posts: 8
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From what I've noticed a lot of the big shops charges drop as the AUM increase thus it gets cheaper the more you have.
Sent from my iPhone using Tapatalk
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04-18-2014, 08:05 PM
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#8
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Full time employment: Posting here.
Join Date: Feb 2011
Posts: 852
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Quote:
Originally Posted by greyhat
From what I've noticed a lot of the big shops charges drop as the AUM increase thus it gets cheaper the more you have.
Sent from my iPhone using Tapatalk
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Uh, no that is Advisor snake oil... The "percentage" goes lower the more you have, but the amount of money they extract from you keeps getting bigger--not big as fast, but bigger...definitely NOT cheaper. They charge you more, but they do not really do anything more...not cheaper by any definition I understand.
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