As a smart investor, one of the key factors to consider when choosing a wealth manager is the fees they charge. High fees can eat away at your investment returns over time, so it's important to find ways to slash fees without compromising on the quality of service you receive.
Here are some tips for how to reduce fees with your wealth manager:
1. Negotiate Fees: Don't be afraid to ask your wealth manager if they can lower their fees. Many wealth managers are willing to negotiate, especially if you have a substantial amount of assets under management.
2. Choose a Fee Only Advisor: Fee only advisors do not earn commissions or sell products, so their fees are typically more transparent and lower than those of advisors who earn commissions on products they sell.
3. Consider a Robo Advisor: Robo advisors are automated investment platforms that typically charge lower fees than traditional wealth managers. They use algorithms to create and manage your investment portfolio, which can help reduce costs.
4. Look for Fee Breakpoints: Some wealth managers offer fee breakpoints, where the percentage you pay decreases as your assets under management increase. This can help lower your overall fees as your portfolio grows.
5. Avoid Excessive Trading: Excessive trading can lead to higher fees, as each trade typically incurs a fee or commission. Make sure your wealth manager is focused on long term investing strategies rather than frequent trading.
6. Review Your Portfolio Regularly: Regularly review your investment portfolio with your wealth manager to ensure that you are not paying for unnecessary services or investments. Make sure your portfolio is aligned with your financial goals and risk tolerance to avoid overpaying for services you don't need.
By following these tips, you can slash fees with your wealth manager without compromising on the quality of service you receive. Remember, every dollar saved on fees is a dollar that can be reinvested in your portfolio, helping you achieve your financial goals faster.