Ever wonder why most financial advisors charge so much, and what you’re getting for it?
Here’s why they charge so much:
Their people make pretty outrageous salaries. Wall Street’s five largest banks paid their CEOs $25 million, on average, last year. Rest assured, there were thousands of “underlings” who also made well over $1 million. Here’s the Wall Street Journal article. Here’s the Wall Street Journal article. Companies have a right to adopt their compensation structure, but you – as a client – have a right to decide whether you want to fund it.
Someone has to pay for those stadium rights. Naming rights aren’t cheap: Bank of America Stadium, TD Place Stadium, TIAA Bank Field, Citi Field, MetLife Stadium, Lincoln Financial Field, US Bank Stadium, Raymond James Stadium, PNC Arena, Comerica Park … the list is long. This surely makes the CEO of each bank feel more important, and gets them great seats. But tell me again how this helps you, the client?
Glossy brochures aren’t cheap. There’s a direct correlation between the cost of marketing materials and fees built into a product. It’s no surprise that variable annuities and variable universal life policies come with beautiful brochures. They have the most beautiful fees (for the salesperson, that is).
Private jets aren’t cheap either. Bank of America’s CEO spends $500,000 annually on private jet travel. That’s for one person.
And here’s what you’re getting: The esteemed privilege of helping big Wall Street banks cover their ever-growing costs.
At Old Peak, we have a different approach. Yes, we charge less, which means our clients keep more. But, just as importantly, our clients get more:
- Financial goal planning
- Investment strategy
- Insurance planning
- Estate planning
- Tax strategy
- Employee benefits advice
- Charitable giving strategies
- College financing advice
- Liability strategies
Your should expect all that from your adviser. What you should not expect is spending millions on stadium rights. So if you ever do see Old Peak Stadium (spoiler alert: you won’t), please … fire us.