A lot of investors wonder, “What should I pay for investment advice?”, and have no idea what sort of answer to expect. There are many factors that go into the cost of investment advice. The biggest factor is what type of investment manager you choose to work with. A lot of financial writers and big firms have done their best to blur the lines in regards to the types of investment managers that exist. Tom answers the frequently asked question, “What should I pay for investment advice?”, and also talks about the differences between stockbrokers, financial planners, and fee-only investment advisors in this video.
The most important information to take away from this Mullooly Asset Management video is that brokerage firms will charge you a commission, financial planners will likely charge you a fee and a commission, and a fee-only investment advisor will charge you a fee. Although brokerage firms have come up with a few different names to call their commissions (like wrap fees), they still represent the same concept. Another thing to keep in mind is that fee-based investment advice is not the same as fee-only investment advice. They sound similar because these investment managers want you to think they are similar. Fee-only investment advisors have your best interests in mind because they only receive compensation for their work from individual investors. Still wondering, “What should I pay for investment advice?”, because the question you might want to be asking is, “Who should I pay for investment advice and why?”. Learn more about the fees and commissions that come from stockbrokers, financial planners, and fee-only investment advisors in this video.