Is your financial manager worth it? Walter Updegrave from CNN/Money answers a writer’s question. The writer has had a financial manager in charge of $400,000 in mutual funds and stocks since 2001, to whom the writer has paid 1% per year, or $16,000 total, in fees. The assets have increased 1% over the past 4 years.
Updegrave tells the reader how to go about determining whether the $16,000 in fees was worth the 1% increase in assets. Some calculations are involved in order to create an appropriate benchmark, and Updegrave points the reader to the Instant X-Ray Calculator in which you may enter your mutual fund holdings to determine your total composition in stocks, bonds and cash.
If you’re paying a crazy fee, your financial manager damn well better be blowing past the market averages. As we all know, the likelihood of leaving the benchmark in the dust is very low.
Email this article
Print this article
Share this article: Twitter | Tip'd | Facebook | Delicious | Reddit | Digg
About the Author
Comments on this entry are closed.