How to discuss fees with your financial advisor (and strengthen your relationship along the way!)

Let’s be real—nobody wants to pay more than they have to. And when it comes to investments, fees can add up fast! But here’s the good news: taking a hard look at fees isn’t just possible, it’s smart. Whether you're looking to cut costs or ensure you're getting the most bang for your buck, you have the power to take control.

Here’s your step-by-step game plan to review your financial advisor’s fees—without burning bridges.

Step 1: Know what you’re paying (and why!)

• How Truthifi can help: Truthifi’s Global Statement consolidates all your accounts into a single view, giving you a clear breakdown of what you're paying in fees and where your money is going. Before you start talking numbers, you need to know exactly how your advisor is getting paid. There are a few common structures:

• Assets Under Management (AUM): A percentage (typically 0.5%–1%) of your total managed assets.

• Flat Fee: A fixed annual or monthly charge for advisory services.

• Hourly Fee: You pay based on how much time your advisor spends helping you.

• Commission-Based: The advisor earns money from selling financial products.

Check your latest statement or advisory agreement. Crunch the numbers—how much are you really paying?

Step 2: Is it worth it? Assess the value you’re getting

• How Truthifi can help: Use The Score to get an easy-to-understand rating of your financial health and assess whether your advisor’s services align with your financial goals. Now, let’s ask the big question: Are you getting what you pay for?

• Investment Performance: Is your portfolio growing at a solid rate?

• Services Provided: Are you getting comprehensive planning, tax strategies, and estate planning, or just basic investment management?

• Market Comparisons: Research industry norms—are your fees in line with what others pay?

• Your Personal Needs: If your financial situation has changed (e.g., fewer transactions, passive investments), you might not need as much active management.

Step 3: Explore other fee structures

• How Truthifi can help: Truthifi’s ProTools feature allows you to compare what you’re paying by account, provider and advisor so you can make informed decisions about what’s best for your portfolio. Knowledge is power. Before you negotiate, research alternative fee structures so you can suggest what makes sense for you. Options include:

• Advisors with lower AUM percentages

• Fee-only financial planners

• Hybrid models (a mix of flat fees and AUM)

Step 4: Schedule the meeting (and set the right tone!)

• How Truthifi can help: The Dash keeps you updated in real-time on your investment performance and fees, ensuring you have accurate data when discussing adjustments with your advisor. Time to make it happen! Reach out to your advisor and set up a time to chat about your fees. Keep it professional but confident. Here’s how to approach it:

• Stay Positive: Let them know you appreciate their work but want to revisit the fee structure.

• Come Prepared: Show your research—market rates, alternative options, and fee structures.

• Emphasize Your Loyalty: If you’ve been a long-term client, remind them! Advisors want to keep good clients around.

Step 5: Discuss (and if necessary!) negotiate like a pro

• How Truthifi can help: Use The Map to visualize how different fee structures and advisory models impact your financial journey, helping you build a strong negotiation strategy. Here’s where the magic happens. Be clear about what you want and back it up with logic:

• Ask for a Lower AUM Percentage: If your portfolio has grown, a lower rate is reasonable.

• Propose a Flat or Tiered Fee Structure: This might help reduce costs as your assets grow.

• Request Adjustments Based on Services: If you don’t need all services, why pay for them?

• Mention Competitor Offers: If you’ve found better deals, use them as leverage.

Step 6: If there is change that both parties support, get it in writing

• How Truthifi can help: Truthifi’s Global Statement allows you to track any fee changes and ensure they are correctly applied, preventing unexpected surprises. If your advisor agrees to a new fee structure, don’t leave it to chance—get it in writing! This ensures you’re protected and there are no unexpected surprises down the road.

Step 7: Keep checking in

• How Truthifi can help: With Truthifi’s Dash, you can continuously monitor your advisor’s performance and fee structure to ensure they remain aligned with your financial goals. Your financial needs change over time, so don’t let this be a one-and-done conversation. Schedule periodic fee reviews to make sure you’re always getting fair pricing.

Why this is a win-win conversation

Here’s the thing—this isn’t just about saving money. It’s about strengthening your relationship with your advisor. A fee discussion can help clarify expectations, reinforce trust, and ensure both parties see eye-to-eye on value. Even if your fees don’t change, you’ll walk away with a better understanding of what you’re paying for—and that’s a win.

Truthifi's financial control system: a smarter way to manage your wealth

One powerful tool for keeping an eye on managed accounts is Truthifi's Financial Control System: 5 Easy Steps to Managing Your Wealth. This system provides a structured way to track advisor performance, monitor fees, and ensure you're getting the best value for your money. By implementing this system, you can confidently supervise your investments, making data-driven decisions to optimize your wealth management strategy.

How Truthifi can help

Beyond renegotiating fees, having the right tools to manage and oversee your financial strategy is essential. Truthifi provides a suite of powerful features to help you take control of your wealth:

• The Map: A comprehensive visualization of your financial landscape, showing how all your assets work together.

• ProTools: Advanced analytics and insights to optimize investment decisions.

• The Global Statement: A single, consolidated view of all your financial accounts.

• The Dash: A real-time dashboard providing instant updates on performance and fees.

• The Score: An easy-to-understand rating of your overall financial health.

Truthifi’s mission is to empower individuals to make informed, data-driven decisions about their wealth. With these tools, you can efficiently monitor your advisor’s performance, track your fees, and ensure you’re always in the driver’s seat of your financial future.

For more details, visit Truthifi Features and Truthifi About Us.

The bottom line

Renegotiating your financial advisor’s fees isn’t just possible—it’s a smart financial move. By preparing, researching, and confidently engaging in the conversation, you can either lower your fees or gain greater clarity on the value you’re receiving. Either way, you win.

So, what are you waiting for? Take charge of your finances today!