In a previous post, we examined various investment products and the potential investment fees associated with each. Many of those investment products—like mutual funds and annuities—may have fairly complicated fee structures. In some cases, it may be difficult to ascertain what the investment products actually cost you.
We believe there is a potentially better solution for high net worth investors when it comes to investing and understanding the investment fees you’re paying.
How Investment Fees Work in Separately Managed Accounts
A separately managed account is one in which you give a money manager or financial advisor discretion over what investments to make on your behalf. The financial advisor or money manager may purchase individual stocks, bonds, ETFs, mutual funds, and so forth.
Typically, separately managed account fees are a percentage of your assets under management which are deducted or paid every quarter. There are often no commission charges for trades, and the fees are often easier to understand than many other investments out there.
Additionally, with a separately managed account you can usually have your financial advisor send you a report each quarter (or annually) that outlines what you’ve paid in fees. This will allow you to have a better understanding of what your investments are costing you, while also giving you the ability to focus on more important aspects of your financial life—like ensuring that you’re on track to reach your long-term goals.
Contact WrapManager Today to Learn More About Our Investment Plans
At WrapManager, we create and regularly update investment plans for our clients to chart their retirement and to stay aware of how on-track they are to reaching their goals.
As part of an investment plan, a client’s Wealth Manager provides financial guidance, money manager recommendations matched to the investment plan’s goals, analysis of retirement income needs and estate planning concerns, and regular conversations to help keep the investment plan up to date.
If you want to explore creating an investment plan for yourself and your family, please give us a call today at 1-800-541-7774 to get started. One of our Wealth Managers would be happy to help you. You can also get started here by answering a few brief questions.
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