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No. of Recommendations: 13
One other thought, Blancaster regarding Fisher or any like him:

I have heard many an investor say that a 1% fee seems fair/justified....sounds small right?

Please note that the 1% is 1% of total assets.

If the "advisor" actually performs at the market (not under it, as many do), they are charging 10% of the average stock market return over it's history. 10% of your profits, if you make them. At a 1.25% fee, it's 12.5% of your profits.

Think about that: They have to perform 10-12.5% above the market for you to do as well as you could do just buying market funds/ETF's....and you've gained nothing. If the market drops, they still get their fees, and you take all losses.

10% for what: talking/listening to you, and then providing one of "X" plans already on the shelf...maybe with a bit of customization to make you feel better.

Oh! One more game they may play, in addition to the 1-1.25% fee, may be to place some of your investment monies in their "proprietary" funds, which also have additional fees which some folks don't notice.

My Father-in-Law (God rest his soul) was with Fisher for a number of many years. I walked him through the math and showed him a relatively conservative dividend-growth investing approach. Counting all the fees (direct and hidden), he was paying Fisher about 1.35%: about 13.5% of average stock market returns...and Fisher was underperforming for years.

He did me the honor of letting me handle his family's assets years ago....and I still do at zero cost....saving them over $20,000/year in fees, while delivering solid returns.

Far better to get a certified financial advisor who charges a flat fee versus one of the Wall Street leeches.

End of rant.

BL and PRE Home Fool
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