Thursday, January 28, 2010

What if you knew how much you paid for advice?

This is a continuation of my last entry "Healthcare and Financial Services, Can Either be Fixed?" See here.

No reason to estimate the value of the advice if we don't know how much you paid.

But what if you did know?

To the penny.

Every year.

And not just some parts (like the amount you write a check for or transaction fees from a brokerage account), but all of it?

  • IRA Custodial Fees
  • Advisory Fees
  • Commisions
  • Fees you paid directly
  • Fees they were paid by others to be able to market to you, or use your information
  • Hidden fees from mutual funds that are passed back to "your guy."
And what if you didn't have to piece it together from legalese riddled prospectuses and a math major to convert everything to hard dollars.

Would it really be that difficult?

Actually most larger institutions already have this information. So why not just make it a law?

Wow, wouldn't that help you figure out if you should pay for that advice, look for someone else, or just do it yourself?

Would we really need any new regulation? Maybe people would collapse whole entities just by walking away. At least that is what Arianna Huffington and these people hope for.