Investors with $100,000 in assets or more can look forward to receiving more one-on-one attention from their financial adviser. Even better, they might pay less for the stepped-up service.
Consulting firm Price-Metrix’s latest survey of investment advisers found that they are shedding clients with smaller portfolios to focus on customers with six figures or more in assets. On average, the number of households served by the advisers surveyed dropped from 165 to 159 in 2012. During the same period, advisers charged 13% less to manage new accounts for which fees were based on assets under management, and they cut rates even more for their most affluent clients.
The average client with $1 million in assets saw an 18% decline in advisory fees, translating into savings of about $1,800 in 2012 over the year before. Part of the reduction was due to an industry shift from commission-based pricing to fee-based models. Fees are negotiable, and a competitive market for advice gives investors bargaining power.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
With a smaller, albeit better-heeled clientele, planners are boosting value with more-comprehensive guidance, adding life insurance and college-savings recommendations to their services. “Financial advisers are becoming a premium service,” says Doug Trott, PriceMetrix’s CEO.
The wooing of the wealthy leaves out young workers, who haven’t had time to accumulate assets but still have questions about marriage, children and buying a first home. People just starting out, as well as anyone lacking a six-figure account, can find an adviser through the Garrett Planning Network of fee-only planners. Another service that’s worth exploring is MyFinancialAdvice.com, which will connect you with a financial planner who will work with you via e-mail or telephone for a flat fee.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
Best Banks for High-Net-Worth Clientswealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2025: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2025.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market has regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until April 2026 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. How do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
