Why You Have More Power Than Ever Over Your Financial Advisor

What’s Going On With Advisors?

Financial advisors are facing a lot of pressure these days. Technology has made it easier than ever to invest on your own. Robo-advisors (automated investment platforms) are getting more popular, and many people are turning to low-cost investment options like ETFs (exchange-traded funds) that charge little to no fees.

Big companies like Vanguard and BlackRock are leading this charge, offering investment products that cost almost nothing to own. This puts traditional advisors in a tough spot: they now have to work much harder to justify the fees they charge.

Investor, author and financial analyst Gregory Blotnick explains that investors today have more leverage than ever. “Clients are in a stronger position now,” he says. “Advisors know this, and many are willing to make deals to keep your business.”

Why That Matters to You

If you're paying someone a percentage of your portfolio every year to manage your money, it’s fair to ask: what exactly are you getting in return?

With so many low-cost options out there, many investors are starting to ask this question—and advisors are noticing. They’re more open to cutting their fees, adding extra services, or changing how they work with you just to keep you from walking away.

Blotnick points out that the old rule of paying 1% of your assets per year is slowly being challenged. More clients are waking up to the idea that they can -- and should -- ask for better deals. And often, they’re getting them.

Don’t Be Afraid to Speak Up

So, can you negotiate your advisor’s fees? Absolutely. And you should.

This doesn’t mean you have to be pushy or confrontational. It just means doing a little homework. Know what alternatives are out there -- like low-cost ETFs or robo-advisors -- and be prepared to talk about them.

Advisors aren’t strangers to these conversations. In fact, many expect them. If they know you’re an informed investor who understands their options, they’re much more likely to work with you on pricing or offer added value.

The Financial World Is Changing -- Use It to Your Advantage

The truth is, investing is easier, cheaper, and more accessible than ever. You don’t need to blindly accept high fees or outdated advice. Today’s tools and information put you in control.

Financial advisors can still offer value -- especially for people with complex financial situations or those who prefer a human touch. But that value should be clear, and the cost should make sense.

If it doesn’t? Don’t be afraid to ask for better. It’s your money, after all.

Bottom Line

The balance of power has shifted. In the past, clients may have felt lucky just to get an advisor’s attention. Now, it’s advisors who are trying to keep clients from leaving. Use that to your advantage.

Ask questions. Compare options. And don’t be shy about negotiating fees. The modern investor is smart, informed, and in control -- and that investor is you.

Posted at MediaVillage through the Thought Leadership self-publishing platform.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.