Ron Lieber of the New York Times is one of my favorite authors of financial and money matters. I frequently forward his columns to my existing clients and future prospects.
His August 22, 2014 article titled “An Emerging Price War in the World of Investment Advice” is a great read for all levels of investment management expertise.
If you manage your own money, there is likely to be big changes ahead for your investment management options. If you pay a third-party for your investment advice, you better pay attention to the industry ground moving under your feet.
Lieber says that people with less money will pay more fees to work with big name brokerage firms. BlackRock, Fidelity, Merrill Lynch, and Schwab are all tuned in to investment costs and fees. “Should they really receive $2,000 each year, year after year, for keeping an eye on a basic $200,000 portfolio?,” he asks.
Everyone with a stake in the investment game should be ready for a game change. Lower costs for individual investors are a good thing. Just be careful where you get the investment advice to go along with it.
Ric Lager
Lager & Company, Inc.
