Do you know how much you are paying your current investment or financial advisor? Investment and financial counseling/planning is one of the few fields where consumers often have no idea how much, in total, the services they are buying cost them.
Fees and expenses are major culprits in destroying the performance of investment portfolios. For example, a $250,000 portfolio earning 8% annually grows to $592,000 over ten years with total fees and expenses of 1% per year. However, increase those costs to just 3% per year and the same investments are worth only $493,000; virtually $100,000 less for the investor!
Advisors, brokers and planners often use high-expense mutual funds in addition to charging commissions, loads and other fees. To make matters worse, they refuse to provide their clients an itemized list of fees and expenses. Investors end up frequently paying 3% or more each year unaware that their pockets (or portfolios) are being picked.
According to the CFA Institute, the average annual expenses of equity mutual funds are over 1.40%, and that does not include broker fees, commissions, loads or other costs imposed on investors. Moreover, it represents the costs of owning the funds only with no counseling or advice as to what investments are appropriate for you.
No Insight Wealth Management client is paying more than 1.25% annually in total fees and expenses, including our fees. IWM uses low (or no) cost securities such as index and exchange-traded funds, stocks and bonds to implement the investment strategies it tailors to the specific needs of each client. Moreover, our investment philosophy emphasizes long-term investments with low turnover to minimize investor costs and taxable capital gains.
IWM is a fee-only firm. That means we accept no compensation in the form of commissions, revenue-sharing, referrals or anything else other than what our clients pay us for our independence, expertise, objectivity and professional guidance.
Please schedule a free, no-obligation initial consultation and portfolio review to see what we can do for you. We’ll provide an analysis of the fees you are paying now and even give you an itemized statement of all fees and expenses you’ll pay as an IWM client before you sign up.