Wednesday, May 13, 2015

Being smart with $$ -- "Annuity" may not be a dirty word

Dirty words. You know a few but is "annuity" one of them? Many believe that annuities are designed to make your financial advisor rich instead of you. There is an argument to be made that that's true.  However, not all annuities deserve the bad rep.  Immediate fixed annuities are a simple product where you exchange cash today for a guaranteed monthly paycheck for the rest of your life. That's good peace of mind and there isn't a salesperson getting rich off selling it either.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Friday, May 1, 2015

Being smart with $$ -- True cost of financial advice

$40,000 is what your financial advisor cost you?!?!?! And that's on EACH $100k you have invested with them?!?!
Thats the true cost over 20 years of an advisor that charges a 1% annual fee according to Kiplinger Retirement Report (March 2015). It assumes 4% annual returns on your portfolio with 28k being fees paid and 12k being lost earnings on those high fees. If your portfolio earns more than 4%, your cost could be dramatically higher. Ask me about the difference offered by fee-based planners.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com