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URL:  http://boards.fool.com/id-bet-his-planner-has-him-locked-in-30665715.aspx

Subject:  Re: RMD, Wrap Fees, and Taxes Date:  5/3/2013  10:50 AM
Author:  telegraph Number:  18373 of 19378

I'd bet his 'planner' has him locked in "A" shares or something that have high surrender charges if he leaves before five years are up. Typical financial planner strategy so you can't move your money even that fund(s) do miserably and fall way behind the index for their class of funds.

The only thing you are doing by a 'wrap' and a 'financial planner' is ensuring that the college tuition and/or new car payments for the planner are paid for by 2 or 3 of his 'best' customers who leave hundreds of thousands or millions in an IRA or wrap account with him/her.

Let's see...just a 1% wrap fee on a million dollar portfolio is $10,000 a year. SOme are 1.5% of assets.....and many plans sock you for high
fund fees plus the wrap fee plus 'other fees' like account maintenence fees...up to 2.5% of your total assets each year.

You don't see it if your account is growing 10% a year..you think you are doing great...but if the market is only going up 4 or 5% a year, you give half the gain to your 'portfolio manager' and 'fees'.

t
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