Preliminary Request for Public Comment on Proposed Fee Table for State-Registered Investment Advisers

June 21, 2018 - David McLaughlin

Subject: Comments regarding fee table
From: David McLaughlin
June 21, 2018


Just some general comments on the proposed fee table for RIA’s. In my practice, my fees start at 1.00% for investment advisory services. However, fees are subject to negotiations. As a result actual fees vary. They should vary for several reasons. Some clients are low maintenance some are high maintenance, some have more complex portfolios, some have more complex situations that require more time to deal with. There are no two clients alike if an advisor is doing his or her job correctly. So fees should be based on the specific situation of each client. Now from the clients perspective what is included in the fee? What are the advisors credentials, level of experience, ability to communicate and empathize, what are their life experiences. A good advisor is also a life coach, these intangible factors weigh into the overall service. Just comparing fees is not a reliable method for a client to find the right advisor. Selecting the right advisor takes time interviewing various candidates. There should be some chemistry which is another intangible. An advisor is a position, if done correctly, that brings the advisor into the inner circle of a client’s life. There are many factors to consider, the least important, in my opinion, is the fee table.

I hope you will consider this and feel free to call me if you want to discuss.

David McLaughlin CFP®
Certified Financial Planner Practitioner™