Dear Friends & Clients:
You’ve probably heard us whistle this tune so often that you can sing along yourself: Among the best ways to maximize expected returns is to minimize the costs involved in achieving them. This begs the question: What about those fees you pay us, your advisor? Are we earning our keep?
It’s a fair and reasonable question. We divide the benefits of working with us in our role as your fiduciary wealth advisor into three, “good, better and best” categories.
Tangible Savings (Good)
As we’ve stated time and again, minimizing the costs of investing in our wild, wooly markets is integral to successful investing. In helping you achieve that goal more effectively than you could on your own, the cumulative cost savings can easily total more than our advisor fees. Following are three of the most hard-hitting examples.
We help you stay the course. A body of solid evidence substantiates that do-it-yourself investors (or those working with brokers whose recommendations are secondary to their commission-based trading role) face an enormous challenge knowing when to buy, sell or hold on tight. When the world is screaming, “DO SOMETHING!” it’s gut-wrenching to ignore the call, even when reacting threatens to derail your carefully laid plans. By providing a bastion of discipline to your investment experience, we help you avoid costly and nerve-wracking trades that are unnecessary, poorly timed or both.
We use low-cost funds to build your portfolio. Especially if you were trading individual securities or investing in actively managed funds, the savings derived from shifting to low-cost institutional funds can be profound. How profound? We would be happy to provide you with a cost analysis comparing the expenses in your Align managed portfolio compared to other possibilities you may be considering. Typically, the results are striking and eye-opening.
We help you minimize taxes. We are vigilant in minimizing the impact of taxes on your net worth by applying a variety of year-round tax-sensitive investment strategies, as well as by ensuring that taxes are carefully considered across the spectrum of your financial plans, such as retirement spending, college funding, charitable giving, estate planning and more.