When it comes to investing, one of the key principles to keep in mind is diversification. By spreading your investments across a range of different assets, you can reduce risk and potentially increase returns. However, another important aspect to consider is the fees you pay to your wealth manager.
Wealth managers typically charge a fee based on the assets they manage for you, which can eat into your overall returns. But there are ways to negotiate lower fees with your wealth manager in order to maximize your gains.
First and foremost, it's important to do your research and understand what fees are typically charged by wealth managers in your area. This will give you a baseline from which to negotiate. You can also reach out to other wealth managers to see if they offer lower fees, which can provide leverage in your negotiations.
When meeting with your wealth manager, be upfront about your desire to lower fees. Explain that you are a long term investor looking to maximize your returns, and that reducing fees is an important part of that strategy. It can also be helpful to highlight any additional services or benefits you bring to the table, such as a large amount of assets under management or a long standing relationship with the firm.
Another tactic is to negotiate a fee structure that is more aligned with your investment goals. For example, you could propose a performance based fee structure, where your wealth manager only earns a fee if they meet certain benchmarks. This can incentivize your wealth manager to work harder to achieve results for you.
Ultimately, negotiating lower fees with your wealth manager can help you keep more of your investment gains for yourself. By diversifying your portfolio and minimizing fees, you can set yourself up for greater long term success in the world of investing.