When was the last time you calculated exactly what you're paying for financial advice? More importantly, do you know what services you should be receiving for those fees? In this eye-opening exploration of advisor compensation, we pull back the curtain on an industry where costs are often obscured and services vary dramatically.
Most registered investment advisors charge between 1-1.25% of assets under management annually, translating to $10,000 per year on a $1 million portfolio or $50,000 on $5 million. But as Jake Martin, our newest Keeler & Nadler team member with 12 years of experience at a billion-dollar wealth management firm explains, this percentage should typically decrease as your assets grow.
The value conversation extends far beyond fee percentages. True comprehensive financial planning encompasses three critical elements: aligning with your specific goals and priorities, implementing holistic strategies (from tax planning to estate preparation), and managing investments appropriately for your situation. Vanguard research suggests quality advisors can add approximately 3% in annual value to client portfolios, largely through preventing behavioral mistakes during market volatility.
Perhaps most revealing is our discussion of the hidden costs embedded in investment vehicles. While advisor fees appear on statements, fund expense ratios silently reduce returns without transparency. These can range from 0.03% for simple index funds to 2% for actively managed options, sometimes with additional sales loads taking 5-6% off the top. The cumulative impact of these layered costs creates a dramatic difference in long-term performance, illustrated through Andy's compelling "weighted vest" analogy.
Whether you're currently working with an advisor or considering one, this episode provides the knowledge to evaluate what you're paying, what you should expect in return, and how to recognize if you're receiving true value for your investment in professional guidance. Your financial future depends on understanding these often-overlooked details.

The opinions expressed in this program are for general informational purposes only and are not intended to provide specific advice or recommendations.

It is only intended to provide education about finance, tax, retirement and related planning topics. To determine which investments or strategies may be appropriate for you, consult your financial, tax or legal advisor prior to implementing. Any past performance discussed during this program is no guarantee of future results.

Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.

Keeler & Nadler Family Wealth is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Keeler & Nadler Family Wealth and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Keeler & Nadler Family Wealth unless a client service agreement is in place.