Helping you get the most out of your money is what a financial advisor is supposed to do, but financial experts say the fees some advisors charge may be costly to clients.
A recent study says sixty percent of people don't understand the fees they pay their advisors.
Geoffrey Brown is the CEO of the National Association of Personal Advisors. He recommends finding people that work on a fee only basis. He says advisors who work for commission don't always have their client's best interests in mind.
“To quantify the impact of conflicted advice which does include high fee products and things of that nature. It’s said that people in Michigan lose upwards of 500 million dollars per year because of conflicted advice. So when you look at it that way the economic impact of not understanding the fees that their paying can be pretty costly”.
Brown says customers can protect their money by simply asking their advisor how they're compensated and for a list of all fees.
“Millennials with the option of investing in either of two commonly held mutual funds can save nearly 215 thousand dollars in fees, that’s for an individual, and retire nearly 533 thousand dollars richer by choosing the one with the fees that are point nine three percent lower. So, that’s pretty significant and that can mean a huge difference in how I live my life in retirement”.
Brown says it’s important to shop around to find an advisor with the best rates and who best meets your needs.