Is my financial planner overcharging me?
November 6, 2008 by Josie Kay · Leave a Comment
Q I have a financial planner who charged $7700 for an initial investment of around $30000. This gave me a credit until $100000. Every time I do additional investing (capital +or margin loan) they charge 5.5% of that extra investment amount (after $50000 it becoms 3.5%). Also the index fund, MLC-Vanguard Aus share index charges its 0.54% with a 0.3% rebate + the margin loan interest of approx 10%. My question is, this seems extreme to me. is it? The value of the portfolio would have to increase by at least 4% + 4% dividends for this investment to even break even. Am I right?
Josie’s answer: ‘Watch out. Everyone is after your money. Learn how to outsmart them! (also applies to financial planners).
Thanks for your question and I am gobsmacked. Read more
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