lattice wealth about fees

About Fees

Portfolio Manager Financial Advisors are inexpensive…maybe.

First let’s be absolutely clear about one thing. Aside from simply buying very inexpensive ETFs, with which you get absolutely no advice from a seasoned portfolio manager/financial advisor, we believe we are the least expensive alternative for any client who wants professional help. 

Advisors Fees can be opaque.

I make this rather audacious statement because there are fees everywhere with many advisors who do not take our approach. First, if they use mutual funds or ETFs, there are operating expenses. These are very opaque, but they always exist. If someone tells you they do not, they are lying. Most advisors will justify them by saying they need the diversification. Baloney. There is a law of diminishing returns with diversification, and it soon becomes irrelevant after about 40 stocks.54 Also, note my comments above about why you should not by non-US companies. 

Watch out, Fees can be layer upon layer

So, there are those pesky operating expense. Then, there are the advisory fees. I have lived off of advisory fees throughout my career, but I’d like to believe I have provided differentiated counsel. If all you are given by your investment advisor are funky suggestions about diversifying internationally or with emerging market bonds, I fear you are not getting much valuable advice. Seems to me that a general amount charged for advisory fees center around one percent.

Be more cautious about taxes than Advisor Fees
If the advisor you are paying does not ask for your tax returns, just what are you getting for advice? As stated above, knowing a client’s tax status is imperative for providing advice. Also, family matters are important. This is where the financial advice industry seems to do rather well. Most advisors do want to make sure your family issues are well taken care of. 

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