Hold on for the Ride: The Way You Manage Your Financial Life is About to Change

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Much like the smartphone changed the way you use your phone and social media changed the way you interact with friends, technology is about to disrupt how you view, manage and understand your financial life.

The digital world allows you to collaborate with your personal financial advisor in a way that is functional and easy to understand. It breaks down the barriers of non-transparency inherent in the financial services industry today.

Technology makes the complex seem simple. It is offering clients and potential clients of financial advisors the ability to:

  1. Discern what is and what is not a fair price for the services they receive
  2. Understand what the fees they pay actually cover
  3. Decide what services they want to pay for and which they do not

While some people, mainly financial advisors, will object and say it is not all about the fees, guess what! It’s all about the fees!

It’s about fees until financial advisors can demonstrate the value they bring to the table for the fees they charge. Do you want to pay $20 for a hamburger when you know of ten restaurants that are charging $8 for a burger? The answer is as likely “yes” as it is “no.” It might be “yes” if its grass fed beef and the burger is delivered quickly in a pleasant, clean atmosphere and it’s one of the best burgers you’ve ever had. That answer is going to be a resounding “no” if the burger is of identical quality and you find out you’re only being charged more because you didn’t know better.

In the financial management of your life, the days of high cost asset management fees will soon disappear. The bundling of financial planning services and investment management under a single all inclusive percentage of assets under management (AUM) fee will soon join the flip phone in its place in history.

Progressive firms now offer clients alternative forms of payment for the advice and asset management services they receive, as well as, a scheduled communication schedule.

You might ask how this benefits you. Well, if you are paying 1.5 percent per year for planning and asset management services, should the amount your advisor receives for planning increase just because your account grows? Now, if you are paying 1.5 percent per year for asset management alone, you might also be interested in buying a bridge we heard was for sale.

Joking aside, developments in this industry offer you a reason for a frank conversation with your advisor about what you want and what your advisor can do for you. You should be able to decide together whether you’re paying a fair price for the services provided and then move forward.

For a glimpse into what the future offers in regards to your overall financial life, email us at [email protected].

This information is provided exclusively for Benchmark Financial Group, LLC clients and is for informational purposes only. No portion of this material is to be construed as an offer or solicitation to buy or sell a security, or the rendering of personalized investment advice outside of the portfolios that Benchmark Financial Group manages for its clients. Benchmark Financial Group does not provide, imply, or otherwise state that the performance of the asset classes and/or investment strategies described is suitable for all investors. All opinions and views are as of the date of this writing and are subject to change at any time without notice. Investing involves risk, including the possibility of loss of principal. Past performance is no guarantee of future results and there is no assurance that any investment strategy will achieve clients objectives or protect against losses. Securities offered through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services offered through PPS Advisors (PPS), a SEC Registered Investment Advisor. Benchmark Financial Group, LLC, American Portfolios Financial Services, Inc. (APFS) and PPS Advisors (PPS) are separately owned entities.

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