Wealth Management/Fee negotiation

[vm26]

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I'm with ML. Overall happy with their services however, never considered their fees or negotiating a better fee rate. Curious as to what others do? Some docs seem to think that having a financial advisor is unnecessary/scam

 

[tartesos]

I'm with ML. Overall happy with their services however, never considered their fees or negotiating a better fee rate. Curious as to what others do? Some docs seem to think that having a financial advisor is unnecessary/scam

A fee for service financial advisor is not a scam.

 

[vm26]

A fee for service financial advisor is not a scam.

You would avoid AUM fees? Is this possible with firms like ML? I saw the below info on WCI:

#2 AUM fees: 0.5%-2% per year ($5,000-$20,000 on a $1 million portfolio, $25,000-$100,000 on a $5 million portfolio)

I want you to do the math and ensure the total paid is less than $10,000 per year.

 

[Mad Jack]

Are they doing true wealth management or are they just a glorified asset manager? Like, are you dealing with trusts, offshore accounts, and other vehicles or just investments? If they're doing actual wealth management and estate planning they can be worth their fees, but asset management is usually a waste of time, as 90% of them underperform the market after fees

 

[Monocles]

You would avoid AUM fees? Is this possible with firms like ML? I saw the below info on WCI:

#2 AUM fees: 0.5%-2% per year ($5,000-$20,000 on a $1 million portfolio, $25,000-$100,000 on a $5 million portfolio)

I want you to do the math and ensure the total paid is less than $10,000 per year.

Ideally most physicians should have some basic financial knowledge to either DIY into broad index funds, or have fee based sessions with fiduciary advisors to guide them maybe a few times a year max.

Wealth management fees are way too high. Even a 1% (or "1 and 10") fee can shave off hundreds of thousands, if not millions of dollars from your wealth over the course of a long period of time. This compared to index funds like VSTAX that have a 0.04% expense ratio.

I get that a lot of docs don't like to think about finance, but because of the amount of money at stake, basic financial literacy SHOULD be part of compulsory medical education.

 

[Chemist0157]

I am DIY. I do not think having a financial advisor is automatically a bad choice. I will consider a retirement planner when I am closer to that.

There was a recent article about how hedge fund managers kept 50% of all gains over the last few decades.

Hedge fund managers pocket almost half of investment gains as fees

Industry has taken $1.8tn in charges since the 1960s, according to LCH research

www.ft.com

That's crazy. Those numbers do not translate to any and all financial services, but bear that in mind. Most of this stuff docs should be able to do on their own. Just have a good tax accountant.

I would not pay someone for stock picks etc. Just do index funds. I try to keep fees low. The highest fees are in my 401k, but it just is what it is, but I still am only paying like 0.24% ER from the funds I have picked.