In good times investors don’t seem to care as much as they should about advice fees.
These are not good times; perhaps explaining why all of a sudden Galileo Capital Personal Financial Advisor Warren Ingram is getting more questions about fees than ever.
Even advisors are asking Ingram how to justify their fees to clients who are asking about the value they provide.
Never be afraid to ask your advisor about fees and what they’re doing to earn them.
Ingram gave the following examples of which questions to ask:
What are your qualifications and how many years have you been advising people on their money?
Can you only recommend products from one company or a range?
Do you earn more by recommending some products over others?
How do you charge for your services? Do you have different fee options? Is there a maximum amount that you charge?
What are my total fees? (They should include all costs. I.e. advice, admin, fund manager, etc.)
Are there upfront fees? Why?
How much money can I expect to lose in a big stock market crash? How much should I hope to get in the long term? (She or he should be able to provide estimates from the worst to best case scenarios, and everything in between.)
Will you invest any of my money in index portfolios? Why not a portion?
- On what basis do you select funds and fund managers?
For more detail listen to the interview in the audio below.
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