In today's fast paced world of investing, agility is key. Being able to adapt quickly to changing market conditions and strategies can make all the difference in maximizing your gains. One often overlooked aspect of investing intelligently is negotiating lower fees with your wealth manager.
While fees may seem like a small detail, they can add up over time and eat into your overall returns. By negotiating lower fees with your wealth manager, you can keep more of your hard earned money working for you. Here are a few tips on how to negotiate lower fees with your wealth manager for greater gains.
1. Do Your Research: Before entering into negotiations with your wealth manager, it's important to do your homework. Research the typical fees charged by wealth managers in your area and compare them to what you are currently paying. This will give you a better idea of what is reasonable to ask for in terms of fee reductions.
2. Know Your Value: Remember that as the client, you hold the power in the relationship. Your wealth manager relies on your business to make money, so don't be afraid to assert your value. If you have a substantial amount of assets under management or have been a loyal client for a long time, use this as leverage in negotiating lower fees.
3. Be Willing 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 pressure your current wealth manager into offering you a better fee structure.
4. Consider Performance Based Fees: Another option to consider is performance based fees. These fees are based on how well your investments perform, rather than a flat percentage of assets under management. This can align the interests of you and your wealth manager, as they will only make money if your investments are successful.
By negotiating lower fees with your wealth manager, you can increase your overall returns and keep more of your money working for you. Don't be afraid to assert your value as a client and be willing to walk away if necessary. With a little bit of agility and savvy negotiating, you can set yourself up for greater gains in the long run.