January 20, 2022
Your investments aren’t just getting harder to manage, they’re becoming increasingly fragmented. Today, it’s not uncommon to own multiple mutual funds and ETFs run by several investment companies, each with a different and complicated fee structure. If you’re finding it a challenge to keep track of it all, maybe it’s time to consider fee-based investing, aka managed money. Here’s why:



Between all the brokerage accounts, mutual funds, annuities, IRAs, and 529s that investors juggle, it’s hard enough just organizing all of the paperwork. It’s also confusing, which explains why nearly three out of four investors can’t tell how much they’re actually paying for investment advice. With managed money, your advisor can corral all of these relationships onto a single platform, saving time. That’s time better spent discussing and perfecting your overall financial plan. Plus, you’ll know exactly how much you’re paying because instead of being compensated through a series of different commissions, advisors get a flat percentage based on the assets they manage for you.



Does that stock fund in your IRA make your overall portfolio too aggressive? Could that annuity bring your strategy back into balance? When your investments are held in disparate accounts, it’s harder to see the big, collective picture. With managed money, both you and your advisor can see your entire investment picture in one snapshot — making it easier to get the best advice based on your holistic needs.



With fee-based investing, you pay the advisor directly through annual fees that are based on the size of your account. This ensures your advisor will always be sitting on your side of the table, looking out for your shared interests. That’s because with managed money, your success is literally their success: The more money your portfolio makes, the more your advisor earns. And when you lose money, they take a cut in compensation.



What if your advisor believes the funds you own are no longer the best options? But what if switching to better choices could trigger sales commissions to get out of some funds and into others? With managed money, you never have to settle because there are no commissions weighing on those decisions. Instead, your advisor is free to construct a portfolio based on only the top choices.



With managed money, you’re always in charge, no matter how involved you want to be. If you’re keen on being hands-on and want to work with your advisor to manage your finances, you can do so as a team. But if you no longer have the time or interest to do that, you can also give your advisor the authority to manage your investments for you—with full confidence. Why? Under a managed money account, your fee-only financial advisor acts as a “fiduciary,” meaning they are legally bound to always put your best interests ahead of their own, giving you peace of mind.

Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/ NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.
CBSI-3214681.1-0820-0922                                                                                                                        ©2020 CUNA Mutual Group