The thought of moving from one provider who manages your money to another with similar objectives may fill you with unease. But with the right partner it can be well worth the effort – and any price you pay in effort can be comfortably redeemed through the considerable long-term benefits you receive.
Here we explain why you should change wealth manager, the practicalities of how to do it (not as onerous as you may think), and we highlight the things which could prevent us from making a move.
Many investors happily pay whatever their wealth manager charges to manage their money, a tonic easily enough digested when markets are healthy and portfolio growth ticks up nicely. But even in good times it is easy to be lulled into a false sense of value – and when conditions are challenging you really should question what you pay in fees.
It is typically preferable for us to accept the familiar, but that familiarity is unacceptable when it could cost you £70,000 in only 10 years, as we show here.
Paying less for a quality service is a worthwhile pursuit but other factors can also more than compensate for the effort of moving.
If you do not invest, perhaps because you are risk averse, it is worth considering the risk of not being invested at all, and seeing how much inflation can reduce the value of your investments or a retirement pot over time.
Actually moving provider is not as painful as you might think. At Netwealth we certainly do all we can to help make the process as smooth as possible.
Whether we make any kind of move – from a bank, broadband provider or wealth manager – is not always dictated by logic. We are often ruled by the whims of our emotions which may constrain beneficial behaviour. But once you are aware of these biases, and the oppressive cost of inertia, you should be in a better position to take action in your favour.
So once you have decided that moving your money is the right thing to do – either for the tremendous cost savings, better control, or more transparency – take a little time to evaluate whether you are being well compensated for making the effort.
Please remember that when investing your capital is at risk.