When it comes to managing your wealth, one of the key factors that can greatly impact your financial success is the fees you pay to your wealth manager. These fees can eat into your returns and hinder your ability to achieve your financial goals. However, with some smart wealth strategies and negotiating skills, you can potentially lower these fees and improve your overall outcomes.
Here are some tips on how to negotiate lower fees with your wealth manager:
1. Do your research: Before entering into any fee negotiations, it's important to understand what the industry standard is for wealth management fees. Look up what other wealth managers are charging their clients and use this information as a benchmark for what you should be paying. This will give you leverage in your negotiations.
2. Understand the fee structure: Wealth managers typically charge fees in different ways, such as a flat fee, a percentage of assets under management, or a combination of both. Make sure you fully understand how your wealth manager is charging you so that you can negotiate effectively.
3. Be prepared to walk away: If your wealth manager is unwilling to budge on their fees, be prepared to walk away and find a different manager who is more willing to negotiate. Remember, you are the client and have the power to choose who you work with.
4. Highlight your loyalty and potential for growth: If you have been a long time client of your wealth manager and have the potential for significant growth in your assets, use this as a bargaining chip in your negotiations. Wealth managers are more likely to lower fees for clients who have the potential to bring in more business in the future.
5. Consider fee only advisors: If you are unhappy with the fees your current wealth manager is charging, consider switching to a fee only advisor who charges a flat fee for their services. This can potentially save you money in the long run and provide more transparency in how your wealth manager is compensated.
By following these smart wealth strategies and negotiating lower fees with your wealth manager, you can potentially improve your financial outcomes and be one step closer to achieving your dreams. Remember, it's important to advocate for yourself and ensure that you are getting the best value for the fees you are paying.