When it comes to investing, one of the key factors that can greatly impact your overall returns is the fees you pay to your wealth manager. While it is important to have a skilled professional managing your investments, it is also crucial to ensure that you are not paying more than necessary in fees.
Negotiating lower fees with your wealth manager can help you maximize your gains and keep more of your hard earned money in your pocket. Here are some tips on how to negotiate lower fees with your wealth manager:
1. Do your homework: Before you even sit down to negotiate with your wealth manager, it is important to do your research. Look into what other wealth managers in your area are charging and what services they offer. This will give you a better idea of what is a fair fee for the services you are receiving.
2. Be prepared to walk away: If your wealth manager is not willing to negotiate on fees, be prepared to walk away. There are plenty of other wealth managers out there who may be willing to offer you a better deal. By showing that you are willing to take your business elsewhere, you may be able to leverage a better fee.
3. Highlight your loyalty: If you have been a long time client of your wealth manager and have a substantial amount of assets under management, make sure to highlight this fact during negotiations. Wealth managers are often willing to offer lower fees to clients who have been with them for a long time and have a significant amount of assets.
4. Ask for a fee breakdown: Make sure to ask your wealth manager for a breakdown of the fees you are being charged. This will help you understand exactly what you are paying for and may give you leverage to negotiate lower fees on certain services.
5. Consider a fee based model: Instead of paying a percentage of your assets under management, consider switching to a fee based model where you pay a flat fee for the services you receive. This can help you save money in the long run, especially if you have a large portfolio.
Negotiating lower fees with your wealth manager can help you increase your overall returns and keep more of your money in your pocket. By doing your research, being prepared to walk away, highlighting your loyalty, asking for a fee breakdown, and considering a fee based model, you can negotiate lower fees with your wealth manager for greater gains.