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Old 03-02-2010, 10:16 AM   #41
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Second I'd negotiate a lower fee. There is minimal additional work for managing $500K vs 1 million so I'd really push for a lower fee,
A lot of firms already do that. Hard to believe that there still are advisors that get 1% PLUS the mutual fund's ER..........


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An even better approach (albeit hard to get an adviser to agree to it) is some type of performance so that they get only get their 1% fee if the really outperform the benchmarks.
A good idea in theory, but Compliance would never allow the adviser to set up that program.....you can put anything you want in an Investment Policy Statement, but Compliance still has to review and approve it.
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Old 03-02-2010, 03:43 PM   #42
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A good idea in theory, but Compliance would never allow the adviser to set up that program.....you can put anything you want in an Investment Policy Statement, but Compliance still has to review and approve it.
I got just far enough in my CFP course to realize that what seemed completely logical to me (performance based fees) weren't allow, but not far enough to understand what if any rational there was for not allowing them.
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Old 03-03-2010, 09:05 AM   #43
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I got just far enough in my CFP course to realize that what seemed completely logical to me (performance based fees) weren't allow, but not far enough to understand what if any rational there was for not allowing them.
It probably raises the risk of litigation dramatically.........
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Old 03-03-2010, 09:58 PM   #44
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I got just far enough in my CFP course to realize that what seemed completely logical to me (performance based fees) weren't allow, but not far enough to understand what if any rational there was for not allowing them.
Maybe performance based fees would encourage too much risk taking?
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