Announcement

Collapse
No announcement yet.

Forget 1% , Check out these fees

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Forget 1% , Check out these fees

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

  • #2
    $4M on $700M of assets is only 0.57% in fees...

    Comment


    • #3
      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.

      Comment


      • #4




        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.

        Comment


        • #5
          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.

          Comment


          • #6
            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.

            Comment


            • #7
              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.

              Comment


              • #8


                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.

                Comment


                • #9
                  Hey CRD, are you thinking of using one ?

                  Comment


                  • #10
                    One of the article I read suggested family offices look for investment opportunities beyond public markets in the PE and direct investment areas.

                    Comment


                    • #11
                      The same can be said for a brilliant research physician that discovers a successful cure for cancer or any brilliant idea that has huge value (an asset has current value and future value).
                      The question is, how best to preserve it and optimize the performance. Sometimes it’s best to hire talent to do it for you. Basically, a Family Office is the corporate headquarters. Pay a CEO and you choose well, fire them, or attempt to DIY. Family Offices come in many flavors. Stan Druckenmiller runs his own. Others outsource only portions. Face it, it’s “overhead”. It’s all negotiable. Do it yourself, in house, or hire someone to do it that has better skills. It’s a Family Business (Office). No right or wrong answer.

                      Comment


                      • #12
                        Im all about being a DIY with brokerage, IRA and 401k's for the time being, its easy, I have very little money. I'm also young, have many years to make up for huge losses and have no intricate estate and tax concerns.  I hope to one day have enough money to hire someone who can help navigate financial complexities that I know nothing about. The dogma of indexing under all circumstances is ridiculous. But then again, some on here may know more than the Rokefellers.

                        Comment


                        • #13
                          What I find interesting here is that we often complain in medicine about our fees being cut, but that does not compare to what is happening currently happening in the finance industry.  These guys are getting decimated.  I would not use them because they would not let me do what I do, but I am sure the value for these services can be justified.

                          Comment


                          • #14




                            What I find interesting here is that we often complain in medicine about our fees being cut, but that does not compare to what is happening currently happening in the finance industry.  These guys are getting decimated.  I would not use them because they would not let me do what I do, but I am sure the value for these services can be justified.
                            Click to expand...


                            It's a lot easier to be your own financial advisor than be your own doctor.

                            Comment


                            • #15







                              What I find interesting here is that we often complain in medicine about our fees being cut, but that does not compare to what is happening currently happening in the finance industry.  These guys are getting decimated.  I would not use them because they would not let me do what I do, but I am sure the value for these services can be justified.
                              Click to expand…


                              It’s a lot easier to be your own financial advisor than be your own doctor.
                              Click to expand...


                              That's not what Dr. Google says.

                              Comment

                              Working...
                              X