At Fisher Investments, we understand the issues fees raise. Hence, we offer a simple and transparent, competitive tiered advisory fee based on your portfolio’s size. It is designed to be easy to understand and we believe it puts your interests first. You will incur trading fees directly billed by the third-party custodian housing your portfolio. But our goal is to work to keep these brokerage charges as low as possible, since our revenue is based on your portfolio’s size.
We believe Fisher Investments’ advisory fees are often lower than other firms’. Why? Many asset managers can charge commissions on products they sell in addition to management fees. Some charges, like annuity commissions, can be upwards of 10%! This creates huge conflicts of interests. Often, better and more affordable products exist, but commissioned financial professionals are incentivized to sell products providing higher returns for them.
Some firms base their fees on performance, claiming it encourages mutually successful investing. But performance-based fees may mean the manager chases short-term returns to maximize fee collections—and shuns proper risk management in the process. Others determine their fees by asset class, presuming bond management should be cheaper. Yet this can incentivize a manager to maintain more equity allocation, which may not be appropriate. Both scenarios ignore your personal financial situation and long-term goals. Finally, going totally low cost may seem appealing. But you get what you pay for—often a no-service, do-it-yourself approach. That’s fine if managing your life savings is your forte, you are always cool-headed and rational about markets, and your idea of a splendid retirement is research and management.
When comparing portfolio management services, remember advisory fees misaligned with your interests can jeopardize your retirement goals. That’s why at Fisher Investments we believe a straightforward investment strategy with transparent fees based on the size of your assets is the best way to help clients.