At Dechtman Wealth Management, we believe in providing exceptional financial advisory and management services with a cost structure that is easy to understand and keeps your expenses to a minimum. In short when you do better, we do better.
With over 30 years of investment and financial advisory experience, Dechtman Wealth Management is well equipped to answer these questions and provide our clients with peace of mind when they begin their experience with us.
A typical investment management company charges around 1% of your portfolio, plus transaction fees and expenses related to trades. Mutual fund expenses and advisor fees can quickly make that fee jump and can be very confusing for the client. According to Forbes Magazine, heavy mutual fund expenses and Exchange Traded Fund (ETF) fees can cost consumers some 40% of their investment returns.
40% is a huge amount of return to sacrifice and nobody should be in that position. But many are, and some don’t even realize it.
Dechtman Wealth Management takes a different approach. We do not layer on expenses and fees from trades made to your portfolio, which can eat away at your returns and make you less successful. Instead, we treat your portfolio as if it were our own and do all we can to minimize expenses with a simple fee-based cost structure [LINK TO: https://dechtmanwealth.com/what-we-do/transparent-fees/]. This philosophy is so engrained in our culture, that we do not charge you for any trading fees when changes are made to your portfolio. This approach is not common in the investment management industry, and our clients appreciate the effort to maximize their returns.
Depending on what services your advisor is providing, you may be charged in a number of different ways. For example, if you visit a large bank or brokerage firm, you may be able to sit down and talk with an “advisor” for free. They give you advice and may or may not execute a trade for you. But when you receive your statement, you may see line after line of deductions for various expenses and fees. These are taken directly from your account as it is managed.
There are also financial advisors that will charge you a one-time fee for a given service transaction. In this case, you may pay from hundreds to thousands of dollars on a single invoice for some service, like setting up a retirement plan, for example.
We believe your management cost should be easy to understand and transparent; when you work with Dechtman Wealth Management, that’s what you’ll get. On your monthly statement, you’ll see the management cost in a simple, straight-forward way. There are no costs, commissions, or expenses when investments are bought or sold so the advisors can remove potential conflicts of interest.
In a word, yes, but you have to be careful about the investment management or financial advisor you choose [LINK TO: https://dechtmanwealth.com/5-important-considerations-in-choosing-a-financial-advisor/]. If your advisor is taking a 7% commission on an investment product purchased on your behalf, and you’re paying 2% on mutual fund fees, it may not be worth it at all.
However, with the right experience from your team coupled with the right cost structure, a wealth management firm can be critical to your ability to build wealth over time.
The amount you pay for a financial advisor should be based on a few key factors:
If there is a straight-forward cost structure, and your financial goals are aligned with your wealth management firm, who has the expertise to effectively grow your portfolio and ensure your financial strategy is sound, paying for a financial advisor becomes an easy decision.
Financial advisors come in all types and offer many different services. The amount you pay should be clearly understood and should fit both your short-term and long-term goals. Call Dechtman Wealth Management today to discuss our costs, and how we can help you secure your financial future.