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Negotiate Fees!

Home Financial Advisors Negotiate Fees!

  • Avatar GPGP 
    Participant
    Status: Physician
    Posts: 121
    Joined: 05/02/2017

    There was a great WCI guest post about checking SEC filings for your advisor. I checked their form ADV, and found that they may negotiate fees. Nothing else hinky, and my planner had good qualifications, and they use good funds. Overall I was pleased with them, except they were pricey.

    I was paying a 1% stock 0.5% bond AUM structure which was changed to 0.9% flat fee (to avoid perception of asset allocation bias).

    The SEC filing showed that they negotiate fees.  So I called, and said I was thinking of leaving to do my own planning vs wondered if they do hourly rate planning. Turns out they do.  It’ll likely be sub-$1000/yr (as we have several years of relationship underway).

    The other thing I found out: you can only get DFA funds via an advisor.  But if you leave that advisor, you can keep your DFA funds – you just can’t add to those positions.  Before learning that, taxable gains was going to potentially keep me there with the hefty AUM fee.

     

    Enjoy – worth a try with whoever you use.

     

    #54150 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4077
    Joined: 05/13/2011

    Amazing how uncomfortable docs are with negotiating, isn’t it? They expect you to, but are obviously pleased when you don’t!

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #54166 Reply
    Rogue Dad, M.D. Rogue Dad, M.D. 
    Participant
    Status: Physician
    Posts: 856
    Joined: 03/07/2016

    I negotiate just about everything except the price of a chai at Starbucks. Worst someone can do is not agree to negotiate or match my offer. If I still value it enough I’ll pay (original or some hopefully negotiate deals price), and if I don’t I won’t.

    Saved a few hundred dollars on new couches that way earlier this week. Probably could’ve saved more but had wife and baby with me — you lose leverage when the baby starts fussing.

    http://www.RogueDadMD.com

    An alt-brown look at medicine, money, faith, and family

    #54180 Reply
    EJ at Dads, Dollars, and Debts EJ at Dads, Dollars, and Debts 
    Participant
    Status: Physician
    Posts: 219
    Joined: 12/01/2016

    I wrote a article about how bad I am at negotiating and how it is worth trying to do in most activities. For services I typically get a few quotes and then go to the one I want with the lowest quote and see if they can beat it. It typically works.

    - EJ @ DadsDollarsDebts.com

    Dad and Cardiologist. Trying to help dads with personal finance so they can focus on the family. Blogger at DadsDollarsDebts.com

    #54185 Reply
    Avatar GPGP 
    Participant
    Status: Physician
    Posts: 121
    Joined: 05/02/2017

    Honestly, until a friend got me reading WCI, I simply didn’t know that I could have been asking about hourly fee based options.  Once with an advisor, I didn’t keep up with Vanguard’s offering for example, much less the vetted list on WCI.

     

    I believe my advisor will no longer do day-to-day asset management, but I really don’t need that.  They will more be involved with financial planning.  I’m also wondering if I really need that: I have their most recent predictions, we have an existing plan,  I can plug my own numbers in, etc.

    #54198 Reply
    Rogue Dad, M.D. Rogue Dad, M.D. 
    Participant
    Status: Physician
    Posts: 856
    Joined: 03/07/2016

    EJ — that qualifies as negotiating. Not as much as I would expect from someone with a brown person gene though. 🙂

    We bought furniture on Monday. It’s a nice store but one of those places where every item has a regular price and a marked down discounted price.

    I bought two things. Asked for a discount because of the amount being spent and being a repeat customer. They came back with about 10% off. I then asked for more off and they agreed to it.

    Then I found out we would be getting a floor model, so asked for more off and they knocked off a little more.

    I probably could’ve gotten more, but I think they played me well against the fussy baby, making me wait a really long time on the offer that I accepted while they knew that my wife was ready to leave with the kid.

    http://www.RogueDadMD.com

    An alt-brown look at medicine, money, faith, and family

    #54199 Reply

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