By Lisa Barron
Many financial advisors
underestimate how much their clients are paying in overall costs, according to a survey conducted by the Peak Advisor Alliance and Cerulli Associates.
The “Performance Study” found that about 62.7 percent of advisors said they believe their clients are paying 1.5 percent or less of their investable assets in total costs.
In fact, the average total cost their clients pay is 1.83 percent of assets. Total costs include the advisor fee as well as the administrative fee, platform fee and product fee.
In light of these findings, advisors have to do more than just list their fees, says Ron Carson, the founder of the Peak Advisor Alliance and chief executive of Carson Wealth Management.
Carson advocates for advisors detailing all of the costs with clients and helping them to differentiate between plans.
The findings on client fees were among several unveiled at the Peak Advisor Alliance’s biannual Excel Meeting held in Chicago last month.
Other key takeaways from the survey included the importance of regular client communication and investing in technology.
Originally published on BenefitsPro.com