Changes Coming to Your Investment Statements

While much attention is given to fees in the investment industry we believe, as do our clients that one generally gets what one pays for in the world today. The cheapest product is certainly often not the best and on the other side consumers often overpay for services they may not require if fees are “bundled” into their investments.

Thankfully, with the final phases of Client Relationship Model, Phase 2 (CRM2) being implemented this summer, dealer firms will have to disclose on an annual basis how much they are being paid to manage your money. This is a great opportunity to reflect on the services your advisor has provided for you. As one of our newer executive clients stated when coming to us, “I’d rather pay for something than pay absolutely anything for nothing”.

Unfortunately, not everyone is getting the service they deserve based on the fees they are being charged. All too often, we meet people whose service level comprises of an annual review focused on investment performance and not on the client’s overall financial picture.

A great financial plan is comprehensive and takes into account many different aspects such as cost-effective implementation, asset allocation, behavioral coaching, and having a withdrawal strategy in place to minimize taxes. If these elements have never been discussed during your reviews, you owe it to yourself to discuss with your advisor what services you’ve actually been paying for over the years.