Keeping investment costs low are a significantly important part of what your financial adviser does. The reason investment costs are important is because they drag on your investment returns. So if your financial adviser is investing your portfolio in high fee investment funds your money essentially has to work harder to overcome those fees and catch up to funds that have a lower cost.
This may be fine if your adviser knows of some world beating investment funds, but history has proven the majority of investment funds struggle to outperform their benchmark indices over one year, let alone being able to outperform them over a several decade investment horizon.
Unfortunately, a significant number of financial advisers aren’t concerned about investment costs because many investors don’t fully understand the impact of costs on their portfolio, nor do they know the extent of the costs they are paying.
Holistic financial advice will look to lower your costs not only on your investment fees, but across the breadth of your assets. A good financial planner will be able to identify if your assets are structured properly and whether your income tax planning is appropriate. Addressing these issues can also mean substantial savings now and in the future.
Why Blue Diamond Financial?
Financial planning is about a relationship between you and your financial adviser. If they are working for you and understand you and your situation they will be looking to make your portfolio and financial circumstances more cost efficient. At Blue Diamond we are client first and operate on a fiduciary basis meaning they have your best interests at heart.
Blue Diamond are licenced to FYG Planners, a privately owned AFSL. This is in contrast to major banks and institutions, where the advisers see their clients as sales targets without an incentive to lower your investment costs.
Learn about the value of financial advice through portfolio rebalancing.