Sunday, May 03, 2015

Do estate executors really need financial planners? What about the hidden fees?


Retirees may be paying exorbitant management fees in some cases, like up to 2% of assets and 20% of gains, with some arrangements, if they are not wary, according to a Sunday Business article in the New York Times today by Gretchen Morgenon, link here
   
And persons who inherit estates may discover hidden fees in accounts that don’t maintain minimum balances, as I recently found out Suntrust was charging $15 a month if the balance fell below $25000 on a money market, to get a certain yield.  It is often difficult for executors to learn all the traps hidden in assets.
    
Do professional financial planners help?  Many of them will charge a percent  the portfolio or something like about $1000 a year or so, and yet they don’t necessarily get better results than simply a conservative self-managed philosophy, unless very diligent (like day traders).  I was approached about doing this about ten years ago and declined. 

 

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