This involves costs associated with being a shareholder of a mutual fund, exchange-traded fund (“ETF”), closed end fund, or other investment that is managed by a third-party. For example, mutual fund costs can include: management fees, sales loads, and redemption fees. 

As an independent fee-only fiduciary financial advisor, we have a tremendous advantage in helping clients reach their financial goals because we are fee-only and don’t accept any commissions. So we are not tied to any particular products or family of funds and can always put our clients’ interests first when providing advice. At Wharton Wealth Planning, we are able to choose from any investment product that is available in the marketplace.

A good advisor will review all of your existing investment accounts – including your IRAs, retirement plans, and brokerage accounts – and search for ways to reduce unnecessary expenses, fund fees and transaction costs on your existing investments. Many people are not aware they are paying high mutual fund fees of over 1% year-over-year. In many cases, the advisor can find thousands of dollars in high-fee funds and excessive capital gains and distribution taxes that can be reduced by over 50%, by substituting and replacing your existing mutual fund investments. These savings alone can help you cover the cost of the advice you get from working with a financial advisor.