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Forget 1% , Check out these fees

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  • Dont_know_mind
    replied
    Hey CRD, are you thinking of using one ?

    Leave a comment:


  • ajm184
    replied


    But paying huge fees for these services is just wasting money.
    Click to expand...


    For a family office the value is in the orchestration of everything working together.  The hiring of an 'outsider' may disrupt other areas.  If the person paying the fee (indirectly) didn't believe appropriate value was derived, they would/can seek alternatives.  I happen to agree that family offices for most are a waste (ego versus actual need), but I don't ever see myself in a position to have to make that decision either.

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  • afan
    replied
    I could set up as many distributions as I want to as many people as I want from my brokerage account for free. My broker would even walk me through it. So what am I paying for?

    There are certainly other things that a family might want that are not as trivial as distributions. But nothing on Tim's list suggests having a stock broker at the center. You need an estate attorney? Hire one. Pay for the legal advice when you need it, pay nothing the other 99.999% of the time. Same for an accountant or whatever. Want to borrow money? Borrow it from your brokerage account, your bank, or some other entity. Need a personal assistant? Hire one.

    But paying huge fees for these services is just wasting money.

    Leave a comment:


  • Tim
    replied
    Family Office is more than portfolio management. It is also more than a great FA. It is also more than an estate attorney. It is also more than tax advisor. It is also more than an accounting firm doing your book keeping and paying bills.

    A Family Office is the place you call when you need money or want to buy something or going out of the country for 3 months. Yes, a Family Office is a personal assistant as well. Please take care of "this". Thank you. Money has needs to produce returns to afford these benefits. Results are the important consideration to serve these accounts.

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  • burritos
    replied
    A target fund of .08% would be $560,000, per year ad infinitum. You could take a nice vacation every year for 3.44 million with the fees saved.

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  • Larry Ragman
    replied




    Those fees and commissions are well below 1%.

    Of course, we don’t know whether those commissions and fees were for putting clients into funds with high expenses.
    Amazing anyone invests with these people.
    Click to expand...


    Afan,  I am a DIY investor myself, but why are you amazed? I could certainly imagine that wealthy families use advisors like this for far more than asset allocations. Just keeping track of multigenerational distributions might justify the fee.

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  • afan
    replied
    Those fees and commissions are well below 1%.

    Of course, we don't know whether those commissions and fees were for putting clients into funds with high expenses.
    Amazing anyone invests with these people.

    Leave a comment:


  • CordMcNally
    replied
    $4M on $700M of assets is only 0.57% in fees...

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  • Crazyroadtodublin
    started a topic Forget 1% , Check out these fees

    Forget 1% , Check out these fees

    https://advisorhub.com/rockefeller-opens-d-c-office-with-4-million-merrill-team/
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