kzenon/Getty Images/iStockphoto
In a recent column for our Globe Unlimited subscribers, I looked at how much in advice fees you should be paying if you're a high net worth individual with $1-million in investable assets. I quote an adviser who charges 0.95 per cent for clients in this bracket and believes that others in his field with higher fees are over-charging.
The many responses I got from readers taught me something about the financial affairs of high-net-worth individuals. Even though they're the most valued clients in the financial services world, they can be just as uncertain about their money as everyday investors. What all people want from an adviser is unbiased straight talk about their finances for a transparent cost. What they too often get is a sales job designed to generate fees they don't fully understand.
Here's some more evidence that high net worth individuals aren't getting what they need from the financial services biz. It's a blog post by an accountant about the questions he gets asked by, as he puts it, rich people.
This accountant gets asked to review investments, to help people figure out their net worth, how to defer tax and whether a particular expense is a wise one. This is all basic stuff advisers should cover in their conversations with clients. If your adviser isn't delivering, ask for better service or find it elsewhere.
Subscribe to Carrick on Money
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
Rob's personal finance reading list…
Don't be a credit card reward points hog
You're out for dinner with friends – is it OK to grab the bill so you can rack up the reward points and then have everyone reimburse you? Answers here.
No revenge spending
For a financially successful relationship, never punish your partner for excessive spending by making a big purchase of your own. This is one of a few money mistakes that a financial planner sees couples making.
The dangers of joint accounts
A lawyer outlines some significant risks for people who want to add a child or other beneficiary as a joint holder of an investment account to avoid probate fees. This item was written for financial advisers, but it's clear as day. Definitely give it a read if you're considering a joint account.
Saying no thanks to fossil fuels as an investor
I was recently on an investment industry panel where one of the topics was the rising level of interest in socially responsible investing. That's where you focus on the best companies in areas like community involvement and environmental record, or eliminate companies in sectors like oil and gas or tobacco. Now comes news that some agencies of the Catholic church are divesting their holdings in the oil and gas industry.
Today's featured financial tool
An investment firm offers this list of 20 questions to ask an investment adviser. Surprisingly tough-minded.
Ask Rob
The question: "I've got a 20 year old son struggling to manage his money at university. Can you recommend tips but also an app for tracking spending?"
The answer: Mint.com is a free app worth pointing out to your son. You might also try asking him to talk about where his money goes on a weekly basis. How much on food, books and supplies, entertainment and so on. Find out where his budget stress points are and discuss solutions. it all comes down to spending less, somewhere.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length.
In case you missed these Globe and Mail personal finance stories
- Why squeezing first-time home buyers is a smart policy
- Eating out is the top financial indulgence among Canadians
- Seven year-end tax tips for investors
More Carrick and money coverage
For more money stories, follow me on Twitter and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Send us an e-mail to let us know what you think of my newsletter.
Want to subscribe? Click here to sign up.
If you like Carrick on Money. we've launched a new Top Business: Evening Edition newsletter providing a summary of the biggest business headlines of the day. Sign up for it and more than a dozen other Globe newsletters here.