Portfolio Update: A Continued Focus on FeesSubmitted by Connecticut Wealth Management, LLC on August 22nd, 2018
In the worlds of financial planning and investment management, there are many variables outside of our control. Perhaps most significant and obvious is the fact that we cannot control the financial markets, and as much as we take the guesswork out of financial planning by building detailed, customized cash flow projections and testing them, looking into the future naturally breeds uncertainty and ambiguity. One area, however, over which we can exert control is through the costs you incur. As a result, we place a heavy emphasis on reducing your costs wherever we possibly can.
It is within this context that we are proud to announce that we have recently garnered a 12% fee reduction for one of the investment managers we currently recommend in client portfolios. More specifically, we leveraged our size and buying power with the Artisan International Value Fund and secured access to a share class that most standalone investors are not able to utilize. This reduction translates fully and immediately to your bottom line and will improve your return experience with the fund.
While this is just a recent example of an effort to reduce your fees, below are other areas related to controlling costs on which we constantly focus:
- Where data suggests we won’t sacrifice performance, we utilize low-cost, index-tracking investment vehicles like exchange-traded funds (i.e. ETFs).
- We have negotiated with LPL to provide our clients with a substantial discount to their standard trading costs, to the point where these costs are similar to what you would find at most discount brokerage houses.
- We avoid investment vehicles with commissions or sales charges.
As we all know, some fees are unavoidable, but we would suggest that incurring fees only becomes a more prominent issue if not being met with commensurate value. While cheaper does not always mean better, we devote significant time, energy, and resources to look for ways to reduce the costs you incur.
As always, feel free to contact us with any questions (and never shy away from asking about fees)!