It depends.
If you want to be more hands on with regards to the management of your assets, if you have trouble giving up control of the management of your assets, or you don’t want to pay a fee for the management of your assets, there are some alternatives for you. Some of the major discount brokerage firms will be able to give you the research and guidance that you may require. However, it comes at a steep price.
The discount brokerage firms must be able to pay for the individuals that answer your questions when you call them on their 800 numbers. One of the ways that this is accomplished is through the use of the proprietary product, sponsored by the firm that the Financial Advisor works for, that the Financial Advisor sells. It is at this point that the decisions of the phone representative acting as a broker, and salesperson can be more damaging to the client’s financial goals than the product being purchased. Why? Because the responsibility of this salesperson is to provide a product that will meet your Investment Objectives regardless of any conflicts of interest that may arise with regards to the financial product’s cost, expense, track record, management style, back-end sales charge, tax inefficiency, required holding periods, etc., etc., etc.
Whenever your choice of future investment options are curtailed, reduced, or impacted by a cost, time, or internal company policy, your ability to manage your assets effectively is also at risk.
It is our belief that working with an independent Financial Advisor that has a fiduciary responsibility to you the client is your best alternative.
What you don’t know will hurt you.
Finding out that administrative costs or activity fees will be assessed have not been disclosed starts to make one think about whether there are other costs of doing business that have not been disclosed.
It should be a priority for you to ask one last question of the financial advisor you are working with before they invest your money, Have you disclosed to me all of the costs of doing business with you and your firm?