Should you reduce your plan’s fees to better serve participants? Many vocal experts speaking on behalf of investors and participants say “yes” – unequivocally. But what about the investors and participants themselves? What do they say?
Invesco Consulting teamed up with language experts Maslansky + partners to get the answer. The nine-month study included in-depth interviews with commission-based brokers and fee-based advisors, dial-session focus groups with 90 investors, and a North American survey of 1,000 investors in the U.S. and Canada.
Throughout the study, there were very few complaints from investors about high fees. Certainly, there were concerns about fees being a drag on returns. But investors were far more worried about overcoming their mounting financial obstacles. They talked about how the industry has grown more complicated – the markets, investment options, retirement liabilities, investment regulations and taxes. And they said they need help and are willing to pay for it, because they don’t have the time or the inclination to do it themselves.
In the broader context, these investors wanted value – services, guidance and investments in exchange for fair and reasonable prices. Three distinct themes emerged from the research with investors and participants: be smart with our money, help us with more than investments and keep us on track. When you consider how to best serve today’s investors, these are the three primary benefits to focus on.
Dial Test: 50 When it comes to your finances, it’s only natural to want to get the best value possible for the money you are paying. And my firm and I believe that what you pay matters. 61
It’s our duty to provide you with advice, investments and services at fair and reasonable prices, and we don’t take that responsibility lightly. Part of establishing a fair and reasonable price is making sure you get the most value possible out of the fee you pay. 68
That’s why now more than ever, the firm and I are working to offer you a greater level of service without increasing the costs you pay. We’re expanding the range of services under the umbrella of financial planning, like minimizing the taxes you pay on investments, planning for financial milestones and ensuring you’re on the right track to achieving the retirement you want. 81
Investors are asking for more help. The trend from commission-based brokers to fee-based advisors is not just due to the regulators. Investors want comprehensive and all-inclusive help that is coordinated by a long-term financial plan.
A good financial advisor does more than just execute trades.
Finally, investors are asking for help tracking their progress toward their goals. They don’t want the set-it-and-forget-it approach. Instead, they want to know where they stand at any given time.
Which financial plan is best? Please select your top choice.