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.
Our clients have the same questions many people ask about wealth management fees and services:
- What is the average investment management fee?
- How are investment management fees paid?
- Are financial management fees worth it?
- How much should you pay for a financial advisor?
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.
What is the Average Investment Management Fee?
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. 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.
How Are Investment Fees Paid?
Depending on what services your financial 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 the cost of a financial advisor 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.
Is the Cost of Financial Management Worth It?
In a word, yes, but you have to be careful about the investment management or financial advisor you choose. 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.
How Much Should You Pay for A Financial Advisor?
The cost of a financial advisor should be based on a few key factors:
- Your portfolio growth
- The expertise of your advisor
- Elimination of unnecessary fees and add on costs
- The breadth of services offered
- Your peace of mind
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.
Summary: How Much Does a Financial Advisor Cost
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 advisory costs, and how we can help you secure your financial future.
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.
Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.
Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
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