Like many things in life, it depends on who you hire, but across most aspects of your financial well-being, such as investment selection, tax planning, or retirement planning, the resounding answer is yes. It is important to consider everything your financial advisor is doing for you when considering the cost. At Vector, we are constantly monitoring our clients’ accounts in multiple areas of wealth management. This monitoring involves, careful investment oversight including risk management and manager selection, progress toward financial planning goals, and tax-efficiency. According to a study by Vanguard, just implementing a tax efficient portfolio can add over 1% to your bottom line; and depending upon your long-term utilization of your money, a well-designed Roth IRA conversion plan for your former employer retirement plans can add another 0.5% annualized net return i.e. the money you keep. While all the areas we have referenced are important, for many financial planning clients, the tax efficiency alone typically more than pays for the advisory fee we charge for all services.
