When it comes to building lasting wealth, one key strategy is to minimize the fees you pay to your wealth manager. While it may seem like a small detail, these fees can add up over time and eat into your investment returns. By being smart about how you work with your wealth manager, you can maximize your money and set yourself up for long term financial success.
Here are some smart strategies for reducing fees with your wealth manager:
1. Negotiate fees upfront: When you first start working with a wealth manager, don't be afraid to negotiate their fees. Many wealth managers are willing to work with clients to find a fee structure that works for both parties. By taking the time to negotiate upfront, you can potentially save yourself thousands of dollars over the course of your relationship.
2. Opt for fee only advisors: Some wealth managers earn their fees through commissions on the products they sell you. While this may seem convenient, it can also lead to conflicts of interest and higher fees for you. Instead, consider working with a fee only advisor who is paid solely by the fees you pay them. This can help ensure that your advisor is working in your best interests and not just trying to sell you products to earn a commission.
3. Be mindful of hidden fees: In addition to the fees you pay your wealth manager, there may be other hidden fees associated with your investments. Make sure you understand all the fees you are paying and ask your wealth manager to explain any that are unclear. By being mindful of these hidden fees, you can make more informed decisions about your investments and potentially save yourself money in the long run.
4. Consider passive investing: Another way to reduce fees with your wealth manager is to consider passive investing strategies, such as index funds or exchange traded funds (ETFs). These investment options typically have lower fees than actively managed funds, which can help you keep more of your investment returns. While passive investing may not be suitable for all investors, it can be a cost effective way to build wealth over time.
By being proactive about reducing fees with your wealth manager, you can maximize your money and set yourself up for long term financial success. Take the time to negotiate fees upfront, opt for fee only advisors, be mindful of hidden fees, and consider passive investing strategies. By following these smart strategies, you can build lasting wealth and achieve your financial goals.