Keeping Your Fees Low

Ask Questions like:

• Are there fees to maintain the account?

• What are the fees to buy and sell the securities in your account?

• Does the asset advisory group use mutual funds as part of their investment selection?

Reasonable Fees

The majority of well-respected asset advisory groups charge no more than an annual fee of 1% to manage your investments. This fee typically does not include transaction fees (i.e. commissions to buy and sell the securities in your account.) The fees are usually based on the value of the assets under their management. The greater the value of assets under management, the lower the fee percentage the firm will charge.

Word of Caution

A word of caution should go to anyone when selecting an asset advisory group using mutual funds as part of their investment selection. All mutual funds, including "no-load" funds, have management fees and expenses.

Asset Advisory Group Motivation

Why should you choose an advisor who charges an annual management fee versus an advisor who receives commissions from the sale of mutual funds, stocks and bonds?

In one word, motivation. The commission advisor receives their fee up front when you buy into their plan. There is typically no more monetary incentive for them to actively manage your personal investment portfolio except to sell you another commissionable stock down the road. A money manager like Bull Group Advisors, Ltd., who charges an annual fee to manage your personal investment portfolio is motivated to actively manage your account and to grow your investments over time. Because their management fee is based on the value of your portfolio, as your portfolio grows, so does their fees.  If your investment portfolio goes down in value, so does their fee. This arrangement creates a valuable partnership between you and your advisor.