Fund companies not advisors the cause of higher fees

Fund companies not advisors the cause of higher fees

8 Comments
  • Tony Battista 2015-07-21 10:46:26 AM
    I have known many investments geniuses, day traders, people with a method, people connected to someone that knows when to buy or sell etc... out of them a tiny minority have managed to make money, but the majority lost money.
    Mutual funds companies have a structure with teams of researchers and analysts and then the managers that put together the data for the decision. I guess all this does not come for free. Than there are the governments that levy taxes, and the regulators that want a lot's of explanatory papers. Than there is the profit, because in this world if you do not make a profit you are a goner.
    Us the advisors, have an infrastructure behind us that does not come for cheap (Assistants, rents, computers with programs and maintenance, office furniture and supplies, phones, permits, credits to keep the licence....)
    We gather the information, we attend strategic meetings and seminars, we meet clients, we offer a shoulder to cry on, we listen and deduct what kind of risk taker we dealing with and advise them on products. We advise on strategies on how to save money and taxes, on how to save for the children's education, on financial decisions and future adversities, and savings for the retirement. We take a client from the GIC world of 1/2% and bring him/her into a 4/6% return net of fees within a minimum volatility. Does the client care that he has been deducted an mer of 2 or 2.5%?. This Tuchman will certainly attract a crowd of followers, I do not see anything wrong with it. To each his own.
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  • Will Ashworth 2015-07-21 12:00:52 PM
    Good counterpoints, Tony.
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  • Marie DeLauretis 2015-07-21 12:37:18 PM
    De Goey's comments are much appreciated and respected!
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