Do you feel you鈥檙e not getting good value for the investment fees you pay? If so, you鈥檙e not alone.
鈥淎 lot of investors out there, especially retirees, don鈥檛 understand the fees they pay and the services they receive for those fees,鈥� said 琉璃神社-based financial advisor .
鈥淭here鈥檚 a lot of variation in fees charged for various investment services and many are often not fully disclosed,鈥� Wilson said, adding she wishes there was more education for investors about appropriate costs for services.
Without a standard in place, Wilson shared some advice for people looking to invest without paying an unfair toll on their return.
Transparency is key
First, discuss fees and services when first meeting with a new advisor and expect to see a transparent breakdown on statements.
鈥淎t Raymond James we have the utmost transparency,鈥� the certified financial planner said of herself and her client service specialist, . 鈥淧eople know exactly what they鈥檙e paying for, exactly what they鈥檙e getting.鈥�
Fees do depend on the account size but should also reflect the sophistication and complexity of services provided, such as financial, tax and estate planning, tax optimization strategies and behavioural coaching.
鈥淚鈥檝e taken on many new clients who questioned their old advisors once they realized the fees they were paying for inadequate service,鈥� Wilson said.
Culture of independence
When Wilson started in the financial industry, she worked within the bank/credit union system.
鈥淚 used to say that I felt I was a product distribution channel for the bank鈥檚 profit centre,鈥� she said.
With that in mind, she encouraged would-be investors to seek out an independent advisor who could provide unbiased advice.
For example, since Raymond James doesn鈥檛 have proprietary products to sell, their advice is completely focused on the needs of their clients, rather than hitting sales quotas. 鈥淲e are not subject to the issues that bank employees have, where they have targets for products to sell,鈥� she said. 鈥淚nstead, we have full autonomy to truly understand our clients and to provide the most appropriate strategies, solutions and investments, from a completely open and unlimited product shelf.鈥�
Thoughtful, deliberate approach
Creating a financial plan is an important opportunity to get to know clients personally and build trusted, lasting partnerships.
鈥淲e don鈥檛 follow a cookie-cutter investment approach, we cater to ,鈥� Wilson said of her . 鈥淒eveloping your plan requires a solid understanding of your goals, investment experience, risk tolerance and more. Most importantly, your required rate of return to achieve your objectives.鈥�
For example, Wilson said a client in his 70s recently considered a high-risk investment opportunity he鈥檇 learned about through a friend. 鈥淗e was blinded by the high return potential but didn鈥檛 have a clear understanding of the risks.鈥�
Because of her client-focused, caring approach, Wilson knew the unique situation and felt the high-risk investment was unsuitable. 鈥淭he five years before and after retirement are known as the 鈥榬etirement risk zone,鈥� and they鈥檙e the most important years to make sound investment decisions.
鈥淗e can鈥檛 return to work at this point in life if he experiences significant losses and the investment wasn鈥檛 liquid to allow for retirement income withdrawals, so simply couldn鈥檛 meet his needs,鈥� Wilson said. 鈥淗is biggest focus should be on ensuring he has enough money to live the retirement lifestyle he wants to live for the rest of his life. Too often I see investors allowing emotions to dictate their investment decisions.鈥�
Working together, Wilson created a budget outlining his projected expenses until he turns 100. Then, she determined his required rate of return to achieve that lifestyle, and recommended a structured income plan and balanced investment portfolio.
To schedule a consultation or learn more about Wilson鈥檚 hands-on, holistic approach to retirement and investment planning, or to risk management, tax-efficient investment strategies, estate preservation and transfer, or corporate investment strategies, fill out the or call
