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.
Sign up for Kiplinger’s Free E-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.
-
Why Taiwan Semiconductor Stock Is Falling After EarningsTaiwan Semiconductor beat expectations for the first quarter but its stock is notably lower. Here's why.
-
Strategies to Optimize Your Social Security BenefitsTo maximize what you can collect, it’s crucial to know when you can file, how delaying filing affects your checks and the income limit if you’re still working.
-
Best Banks for High-Net-Worth Clientswealth management Kiplinger's 2023 list of the best banks for higher-net-worth clients.
-
Stock Market Holidays in 2024: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Take a look at which days the NYSE, Nasdaq and bond markets are off in 2024.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? It's true the stock market does have regular hours, but 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.
-
I-Bond Rate Is 5.27% for Next Six MonthsInvesting for Income I-Bonds issued November 1, 2023 through April 30, 2024 will have a rate of 5.27%.
-
What Are I-Bonds?savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. So 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.
