When it comes to building wealth, every penny counts. One area where you could be losing money without even realizing it is in the fees charged by your wealth manager. These fees can eat away at your returns over time, so it's important to be proactive in finding ways to cut them down. Here are some tips to help you keep more of your hard earned money in your pocket:
1. Understand what you're paying for: Before you can start cutting fees, you need to understand what you're being charged for. Take the time to review your wealth manager's fee schedule and make sure you understand exactly what services you're paying for. If there are any fees that seem excessive or unclear, don't be afraid to ask for clarification.
2. Negotiate: Just like with any other service provider, you can often negotiate with your wealth manager to lower your fees. If you feel like you're paying too much, schedule a meeting to discuss your concerns and see if there's room for negotiation. Your wealth manager may be willing to lower their fees in order to retain your business.
3. Consider a fee only advisor: Some wealth managers charge fees based on a percentage of assets under management, which can add up quickly. Consider switching to a fee only advisor who charges a flat fee for their services. This can help you avoid paying excessive fees as your wealth grows.
4. Be mindful of hidden fees: In addition to the fees charged by your wealth manager, there may be other hidden fees associated with your investments. Make sure you're aware of any additional costs, such as trading fees or fund expenses, and look for ways to minimize them.
5. Review your investments regularly: Keeping a close eye on your investments can help you identify any underperforming assets that may be costing you money in fees. By regularly reviewing your portfolio and making necessary adjustments, you can ensure that you're getting the most out of your investments without paying unnecessary fees.
Building wealth wisely means being proactive about cutting costs wherever possible. By taking the time to review your fees, negotiate with your wealth manager, and stay informed about hidden costs, you can keep more of your money working for you in the long run.