Gregory Blotnick: The Shifting Landscape for Financial Advisors

Financial advisors are under increasing pressure these days. The rise of technology, particularly robo-advisors (automated investment platforms) and low-cost investment options like ETFs (exchange-traded funds) that charge minimal or no fees, has made it easier and cheaper for individuals to manage their investments. Giants like Vanguard and BlackRock are driving this change by offering investment products with extremely low costs, forcing traditional advisors to work harder to justify their fees.

Why Investors Have More Leverage

According to investor, author, and founder of Valiant Research Gregory Blotnick, "Clients are in a stronger position now." He explains that advisors are aware of this power shift and are often willing to negotiate to retain your business.

The Value Question: Are You Getting Your Money's Worth?

If you're paying an advisor a percentage of your portfolio annually, it's fair to ask what you're truly receiving in return. With so many cost-effective alternatives available, more investors are posing this question, and advisors are taking notice. They're becoming more open to reducing fees, adding extra services, or adjusting their working arrangements to keep you as a client.

Blotnick notes that the traditional 1% annual fee for asset management is being challenged. Clients are realizing they can, and should, demand better deals, and often, they're succeeding.

Don't Hesitate to Negotiate

Yes, you absolutely can and should negotiate your financial advisor's fees. This doesn't require an aggressive approach. Instead, do your research. Understand the alternatives, such as low-cost ETFs and robo-advisors, and be prepared to discuss them. Advisors expect these conversations. When they see you're an informed investor who understands your options, they're more likely to work with you on pricing or offer added value.

Harnessing the Changing Financial World to Your Advantage

Investing is now easier, more affordable, and more accessible than ever before. There's no need to passively accept high fees or outdated advice. Today's tools and information empower you.

While financial advisors can still provide significant value those with complex financial situations or who prefer a human connection, says Gregory Blotnick, that value should be clear, and the cost should be reasonable. If it's not, don't hesitate to ask for a better arrangement. After all, it's your money.

The Bottom Line

The power dynamic has shifted. What was once a seller's market for financial advice is now a buyer's market. Advisors are striving to keep clients, rather than clients feeling fortunate to secure an advisor's attention. Ask questions, compare options, and don’t be shy about negotiating fees.

The modern investor is informed, empowered, and in control. That investor is you.