, Columnist
How Much Should Financial Advice Cost?
Marcus Invest adds to the downward pressure on the traditional 1% fee.
Is the human touch worth an extra 0.65% a year?
Photographer: Scott Eells/Bloomberg
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There’s an argument among financial advisers about what investment advice should cost, and Goldman Sachs Group Inc. has thrown its considerable weight into the debate.
For as long as anyone can remember, the average fee for investment advice has been 1% a year on the value of clients’ assets. But even as fees have dropped across the industry on everything from brokerage commissions to mutual fund expense ratios to the share of profits hedge funds demand from investors, the old 1% advisory fee hasn’t budged.