You may have noticed recently that banks and financial service companies are offering “free” services with no management fees. However, is there any such thing as a free lunch? The short answer: NO. As illustrated through the image above – you are likely flushing money away through hidden fees. Similar to a casino that will ‘comp’ your food, your hotel room to entice you to gamble, your local broker or banker isn’t offering free-of-charge investment management due to altruism. Anyone who tells you differently is either lying, inept, inexperienced, or a combination of all three. These products don’t always serve your best interests and often create continuous commissions and profits for the advisor and the firm.
*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.