Do you know how much you are paying in advisory services and fees to a big bank managing your investment or retirement accounts? The answer will surprise you. A study from Personal Capital compared the costs of investing your money with big banks compared to lower-cost providers like Fidelity or USAA.
Take a look at a $500,000 account and how advisory services and fees impact the portfolio over 30 years:
Having an investment account at Merrill Lynch is 45% more in total costs than Fidelity! Also, if you do business with a company like Merrill Lynch, there is no fiduciary duty to you. In plain English, that means your financial advisor is working for Merrill Lynch, not for you or in your best interest.
Take action by opening accounts at lower cost providers like Vanguard, Charles Schwab, or Fidelity and transfer your investment or retirement accounts there. Or find a fee-only financial planner who charges a retainer fee and not an AUM fee for managing your account.